09.03.2010

Ashtead down 28%

Ashtead, owner of Sunbelt in the USA and A Plant in the UK has reported nine months revenues down 28 percent to £625 million. Sunbelt saw revenues dip just over 30 percent to $821.3 million while A-Plant revenues were down over 26 percent to £121.2 million.

The third quarter showed an improving situation with rental revenues down 22 percent and 19 percent respectively.

Operating profits for the nine months were $92.2 million for Sunbelt, compared to $224.5 last year while A-Plant revenues fell to £1.3 million from £14.5 million last year.

The group as a whole reported pre-tax profits of £3.9 million compared to £99 million last year. Capital expenditure so far this year is £35 million compare to £234 million for the first nine months of last year. Sales of used equipment from the fleet totalled £19.4 million compared to £72 million last year.

The company posted strong cash generation and reduced its net debt by £207 million to £829 million.

“Ashtead chief executive Geoff Drabble said: “Whilst market conditions have remained difficult throughout the period, our operational performance has been good relative to both our UK and US peers and we are clearly gaining market share. This outperformance, together with the preparatory actions we took a year ago to reduce costs and fleet size, has helped us to protect profitability and deliver continued strong cash generation. Our strong balance sheet will also enable us to ensure that we have the appropriate infrastructure and fleet mix in place when cyclical recovery begins.”

“We continue to believe in the fundamental strength of our markets. The business is delivering good margins and gaining market share, which, together with its financial strength, means that the Board believes that Ashtead is increasingly well placed to benefit when markets recover."