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(Alliance News) - Ashtead Group PLC on Tuesday reported growth in first-half earnings and said demand in North America is strong, despite it cutting guidance last month after being hurt by actors' and writers' strikes.
The London-based industrial equipment rental company said in the six months to October 31, pretax profit grew 5.0% to USD1.25 billion from USD1.19 billion the year before, as revenue rose 16% to USD5.57 billion from USD4.80 billion a year prior.
Rental revenue grew 13% to USD4.96 billion from USD4.38 billion the year prior.
The company said it was a record first-half outturn helped by "robust end markets".
Ashtead upped its interim dividend by 5% to 15.75 US cents per share from 15 cents.
Ashtead last month said revenue late in the second quarter and into the third was hit by lower emergency response activity, due to a quieter hurricane season and fewer naturally occurring events like wildfires. Also, in both quarters, its Film & TV business was impacted by the recent actors' and writers' strikes.
Ashtead consequently revised its full-year guidance downwards last month. It now expects group and US rental growth between 11% and 13%, compared to prior guidance of 13% to 16%.
Looking ahead, Chief Executive Brendan Horgan said: "The group continues to perform strongly with revenue up 16% and rental revenue growth of 13%, both at constant currency," adding its North America end markets "remain robust with healthy demand."
Shares in Ashtead were down 3.9% at 4,728.00 pence each in London on Tuesday morning.
By Sabrina Penty, Alliance News reporter
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