Ashtead to top forecasts after record Q1
The company, whose UK business A-Plant is headquartered in Warrington, said revenues in the three months to the end of July surged 24% to £410.5m, while EBITDA and pre-tax profits surged 34% and 59% respectively to £176.7m and £99.5m.
Birchwood-based A-Plant, which trades from 106 locations nationwide, employing more than 2,200 people is second in the tool hire market to Speedy Hire. Within Ashtead it is much smaller than the group’s Sunbelt Rentals, which is the second-biggest equipment rental business in the US with 388 branches.
Assessing the results, Geoff Drabble, Ashteads’ chief executive said: “The first quarter saw a continuation of the momentum established in the business, resulting in pre-tax profit of £99m. This performance is being driven by strong revenue growth and operational efficiency as demonstrated by the improvement in margins and return on investment.
“Our focus remains on organic growth with £279m of capital expenditure in the first quarter. Whilst we continue to invest significantly in the business, our strong margins allow us to do this while delevering.
“As a result of this impressive performance, and with a strong balance sheet to support future growth, we now anticipate a full year result ahead of our previous expectations.”
The group said A-Plant had a “good quarter”, delivering rental revenue growth of 35% to £61m (2012: £45m). Rental revenue growth excluding acquisitions was 12%, reflecting 9% more fleet on rent and a 3% improvement in yield.
