20.08.2006

Nations Rent profits rise prior to acquisition

Nations Rent North America’s fifth largest equipment rental company that will merge with Ashtead at the end of the month has reported improved results for the quarter and half year.

Half year revenues are up by 14 percent to $357 million with operating income almost tripled to $25 million while net profit after tax grew from a $7.6 million loss in 2005 to a $3.1 million profit this year.

Utilisation improved for the quarter rose by four percentage points to 54 percent, still well below that of Sunbelt, Ashtead’s American subsidiary.

Ashtead’s shareholders approved the acquisition at an EGM on August fourth and over 98 percent of the holders of Nation Rents senior subordinated notes accepted the cash offer for the notes.

As a result the merger of Sunbelt and Nationsrent should proceed form the start of September.