Ashtead confident of beating FY expectations

Plant hire group Ashtead reported record third quarter pre-tax profit and expects full year profit to be significantly ahead of previous company expectations.

For the quarter ended 31 January 2012 the group posted pre-tax profit of £21m compared with a £2m loss the same time a year before, helped by favourable weather conditions and after momentum continued from recent quarters. Revenue for the period increased 21% to £271.3m.

Earnings per share rose to 2.5p compared to a loss per share of 0.2p in the previous year.

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Sunbelt, the firm's main US business, saw rental revenue grow 25% to $1,012m, helped by a 13% increase in average fleet on rent, 7% higher yield and a first-time contribution from Empire Scaffold. In the UK, the firm's A-Plant rental revenue grew by 11% to £125m including 1% growth in average fleet on rent and 6% yield improvement.

Ashtead said it remains confident over the outlook for end construction markets in the short-term.

Chief executive Geoff Drabble commented, "We continue to invest strongly in organic growth, with our rental fleet now being 11% larger and an average of five months younger than a year ago."

"The Board remains committed to a strategy of strong organic growth and continues to believe that we are well positioned to take advantage of a continuation of current market trends. We therefore now anticipate a full year profit significantly ahead of our earlier expectations."