07.03.2006

Ashtead turn in record result

The Ashtead Group plc, owner of Sunbelt in North America and A-Plant in the UK, has announced record results for the nine months ended 31 January 2006, with revenues up almost 20 percent to £476 million. Operating profits at Sunbelt rose by over 62 percent, while A-Plant was up almost 15 percent.

Profit before tax and exceptional items for the period, almost tripled to £53 million A net exceptional credit of £9.5million, takes it up to £62.5million.

Sunbelt revenues grew 22.8 percent to $616.0million. It expanded its rental fleet by an average of 10 percent compared to a year ago and increased rental rates by approximately 12 percent. Average utilisation edged up a point to 71 percent.

A-Plant’s revenues increased by 6.1 percent to £118.9 million. Rental rates, average fleet size and utilisation for the nine months were all at similar levels to those of last year.

Ashtead’s chief executive, George Burnett, said:
“We are pleased to report a strong performance in our seasonally weak third quarter. Favourable conditions continued in all Sunbelt’s markets and drove third quarter revenue growth of 31.0 percent".

"The new sales structure at A-Plant introduced at the start of the current financial year began to deliver its planned benefits with revenue growth of 6.1 percent in the third quarter. As we announced on 24 November 2005, the third quarter also saw a £11.3m exceptional receipt on settlement of a longstanding legal claim in the US".