(Alliance News) - Shares rose in Crestchic PLC on Tuesday as a continuation in the group's strong trading momentum led to a significant increase in its profit expectations for the year as a whole.
This will mark the third increase in expectations Crestchic has announced in 2022.
Shares in the Burton-on-Trent-based industrial equipment supplier were 19% higher at 233.50 pence on Tuesday morning in London.
Crestchic said that the strong trading seen in the first quarter of 2022 had accelerated in the second quarter, providing a robust pipeline for both hires and sales.
The group also benefitted from extensions to several ongoing rental projects, while the securing of its largest ever hire contract will benefit both Crestchic's second half of 2022 and the first quarter of 2023.
Although inflation and supply chain challenges remain an issue, and is expected to constrain the pace at which Crestchic can invest in its hire fleet to meet demand, the company has responded by purchasing and refurbishing used equipment. This is expected to be cost-effective.
Crestchic also said that it has agreed on the sale of its Tasman oil drilling tools business in the Middle East, and expects the deal to be completed once local regulatory approvals are gained.
"We remain very confident in our strategy, the strength of our markets and our prospects for continued growth," the group stated.
Crestchci will publish its interim results on September 29.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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