24.06.2008

Profits jump 51% at Ashtead

Ashtead Group, owner of Sunbelt in the USA and A-Plant in the UK has reported a 12 percent rise in full year revenues to just over £1 billion. “Underlying” pre-tax profits jumped by 51 percent to £123 million.

Underlying profits without Ashtead Technology for which a disposal deal was announced yesterday, grew by 49 percent to over £75 million.


In the USA Sunbelt saw operating profits rise to $331 million, while in the UK A-Plant’s profits jumped by 46 percent to £30.2 million.

The company says that market conditions remain good in both the UK and the US with physical utilisation in both businesses up on the same period for last year on in spite of a larger fleet.

Ashtead's chief executive, Geoff Drabble said: “We are pleased to report strong results for the year. In the United States, in the first full year of our ownership of NationsRent, Sunbelt has delivered strong 21 percent growth in underlying operating profit and established a foundation for further improvement as the full benefits of the acquisition are realised.”

“In the UK, A-Plant saw strong organic revenue growth and a tight control of infrastructure cost, delivering an excellent 46 percent improvement in underlying operating profit.”

“The sale of Ashtead Technology for £96 million will allow us to continue to focus on the development of our core businesses and significantly reduce debt.”

“In May both Sunbelt and A-Plant delivered improved year on year performance. We continue to enjoy high levels of utilisation and expect to benefit further from the momentum established in the group. Therefore, despite the current economic uncertainty, the board anticipates the group continuing to trade in line with its expectations in the coming year.”

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