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(Alliance News) - Ashtead Group PLC said on Tuesday third quarter rental revenue grew 25% on the previous year and as a result, the company raised its annual guidance.
In the three months that ended January 31, the company's financial third quarter, Ashtead reported revenue of USD2.0 billion, up 23% from USD1.62 billion in the previous year. Core rental revenue rose by even more, increasing 25% to USD1.82 billion from USD1.45 billion.
The London-based industrial equipment rental company explained that rental revenue growth had been driven by volume, with a larger fleet and improved utilisation.
Pretax profit was USD393 million, up 38% from USD284 million year-on-year.
Earnings before interest, tax, depreciation and amortisation in the quarter totalled USD876.9 million. This represented a 21% increase from USD726.3 million.
Looking forward, Ashtead said it expects its full-year results to be slightly ahead of its previous expectations. The company raised its rental revenue growth expectations to between 20% to 22% from 18% to 20%. It said the business is performing strongly despite "supply chain constraints, inflation and labour scarcity".
Capital expenditure is expected to be slightly above previous guidance of USD2.5 billion.
Shares in Ashtead were up 2.2% at 4,747.00 pence on Tuesday morning in London.
By Heather Rydings; heatherrydings@alliancenews.com
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