05.03.2014

Strong growth continues at Ashtead

Ashtead, owner of Sunbelt Rentals and A-Plant has issued its nine month numbers, with strong revenue and profit growth on both sides of the Atlantic.

The group overall posted a 23 percent increase in revenues to £1.25 billion, while pre-tax profits jumped 73 percent to £285.7 million.

US based Sunbelt saw revenues increase by more than 21 percent to $1.66 billion, driven by a 17 percent increase in fleet on rent and five percent improvement in yield. Average nine month physical utilisation was the same as last year at 71 percent. Operating profit increased by around 39 percent to $494.2 million.

In the UK A-Plant saw revenues rise by 31 percent to £201 million, while operating profits more than doubled to £21.4 million, reflecting a 21 percent increase in fleet on rent

Capital expenditure in the nine months was £564 million, leaving the fleet with an average age of 29 months down from 32 months, this time last year. The group is expecting to up this year’s overall spend to around £700 million

Ashtead chief executive, Geoff Drabble said: "The business continues to have strong momentum, resulting in record nine month pre-tax profits. Our strategy continues to be focused largely on organic growth, supplemented by a range of bolt-on acquisitions. We invested £491 million in our rental fleet and a further £85 million on acquisitions during the period. Our markets remain strong and we anticipate growing the Group's fleet organically in the coming year in the low to mid-teens percent range."

“We remain committed to our debt leverage target of below two times EBITDA. As a result, we now anticipate a full year profit ahead of our previous expectations and the Board looks forward to the medium term with continued confidence."