28.06.2006

George Burnett to retire

George Burnett, the chief executive and founder of the Ashtead Group is to retire after his 60th birthday in September. He will finally depart at the end of the year.

Burnett, along with Peter Lewis organised a Management Buy In at Ashtead in 1984. It wads then a five branch rental business in the south-east of England with revenues of £1million. They floated the business two years later.
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George Burnett accepting the Hire Person of the Year Award from the Hire Association of Europe

The two became a double act over the years expanding the business through strong organic growth and acquisitions. The company became well known for its 12, often 13 month, payment terms for equipment and during its middle years interesting accounting practices.

The company moved into the tough North American market when it purchased Sunbelt, a two location business in Charlotte in 1990 and prospered. Accounting irregularities at Sunbelt nearly took the company down in 2003. Burnett moved to the USA during that period and turned the operation around.

Since the retirement of Lewis in July 2001, Burnett has transformed Ashtead’s financial position and put the group back on a strong but steady growth path.

When rumours circulated last year about the appointment, by the board, of a recruitment company to find a replacement for Burnett behind his back, supposedly driven by one or two influential analysts. see Vertikal comment Dec 13 2005 There was strong condemnation from many investors who felt, rightly so, that the shareholders owed the companies survival to Burnett.

It is hard to dispute that without his efforts they would have seen their investments wiped out. Ashtead has just reported record profits and is now the world’s fourth largest equipment rental company.

George Burnett is one of the industries gentleman, quiet yet persistent, hard working and always professional. He does though leave the business in a very strong position for his successor, something that I am sure he was determined to do. He will be missed

His successor

Burnett will be succeeded by Geoff Drabble, currently an executive director of The Laird Group PLC where he is responsible for its Building Products division and a non-executive director of Ashtead since April 2005. Drabble has experience of managing businesses with operations on both sides of the Atlantic both at Laird and previously with Black & Decker.
He will start full-time in his new role on 2nd October 2006. working a handover period alongside George Burnett until his departure at the end of the year.