15.06.2016

Another profit jump for Ashtead

Ashtead, owner of A-Plant in the UK and Sunbelt Rentals in the USA has reported a 19 percent rise in revenues and a steep rise in profits.

Total revenue for the year to the end of March was £2.55 billion, 19 percent up on last year, with rental revenues rising 17 percent. Pre-tax profits were 24 percent higher at £616.7 million.

Sunbelt revenues jumped around 20 percent to $3.28 billion with operating profits increased over 21 percent, A-Plant in the UK saw revenues rise almost 13 percent to £364 million, with operating profits jumped 45 percent to £67 million

Chief executive, Geoff Drabblesaid: "2015/16 was another very successful year for Ashtead with group rental revenue increasing 17 percent and underlying pre-tax profit up 24 percent to £645 million at constant exchange rates”.

We continue to deliver on our well-established strategy of organic growth, supplemented by bolt-on acquisitions. We have broadened both our geographic footprint and the markets we serve and the benefits of this diversification are evident, both in our financial performance and our market share gains.

“Particularly encouraging is the continued improvement in our margins, with group EBITDA margins now a record 46 percent. These strong margins, together with the natural moderation of our replacement fleet expenditure, mean we are entering a phase where we anticipate both good earnings growth and significant free cash flow generation. We therefore have the flexibility to continue both to invest in our long-term structural growth opportunity and enhance returns to shareholders”.

“We have seen a good seasonal upward trend in fleet on rent throughout the Spring which has continued into the new financial year. Our end markets remain strong, the structural drivers are still in place and we have a strong balance sheet which allows us to execute our plans responsibly. As a consequence, the board continues to look to the medium term with confidence."