Member Article

Ashtead Group report unexpected 76% rise in profits

British equipment rental firm, Ashtead Group have has a highly successful first quarter, and reported a 21% rise in revenues to £325m.

Pre-tax profits increased by 76% to £61m at constant exchange rates, which CEO Geoff Drabble attributed to steady improvements in the U.S market.

Mr Drabble said: “We are delighted with this record performance as we continue to benefit from the trends established in the business over a number of quarters.

“The markets in which we operate have performed as anticipated with gently improving conditions in the US and a more challenging outlook in the UK. We do not anticipate any significant changes to this environment in the short term.”

Ashtead’s U.S brand Sunbelt Rentals experienced a 17% revenue improvement, while group EBITDA margins rose to 40%, which is 5% more than the first quarter of 2011.

The company refinanced their long term debt which lowered costs and lengthened maturities, while the Board now predicts a full-year report that greatly exceeds their original outlook

Mr Drabble continued: “Against this back-drop our continued market share gains are again reflected in our strong growth in fleet on rent and improving margins demonstrate our operational efficiency.

“Given the momentum established in the business, we now anticipate a full year result materially ahead of our previous expectations.”

This was posted in Bdaily's Members' News section by Miranda Dobson .