Ashtead Group Share News (AHT)

LONDON (Alliance News) - Equipment rental firm Ashtead Group PLC on Monday said it had a strong third quarter, with a double digit rise in profit and revenue on strong North American markets.

On a statutory basis, pretax profit for the three months to January 31 was GBP240.9 million, up 17% year-on-year from GBP194.3 million the year before. On an underlying basis, pretax profit rose by 17% to GBP254.3 million from GBP205.1 million.

Revenue for the quarter grew by 20% to GBP1.14 billion from GBP916.1 million, within rental revenue climbing by 19% to GBP1.05 billion from GBP845.5 million.

For the first nine months of Ashtead's year, statutory pretax profit increased by 23% to GBP850.9 million from GBP687.4 million. Revenue for the period saw a 19% lift to GBP3.39 billion, on rental revenue rising by 18% to GBP3.12 billion.

Ashtead's Sunbelt US business performed strongly in the nine-month period with organic growth and acquisitions, with earnings before interest, taxes, depreciation and amortisation at GBP1.44 billion from GBP1.19 billion, while revenue grew to GBP2.88 billion from GBP2.37 billion.

The group said rental revenue was boosted by an increased fleet on rent year-on-year as well as the clean-up following major hurricanes in the US in the autumn of 2018, however its impact on revenue was much less, estimated to be between USD30 million and USD35 million.

Looking ahead, Ashtead has guided for capital expenditure for its current year ending April to be at the upper end of guidance at around GBP1.6 billion, with a similar level for its following financial year.

"Our business continues to perform well in supportive end markets. Accordingly, we expect full year results to be in line with our expectations and the board continues to look to the medium term with confidence," said Chief Executive Geoff Drabble.

Shares in Ashtead were down 3.1% at 2,002.48 pence on Tuesday.