3rd Mar 2015 07:24
LONDON (Alliance News) - Ashtead Group PLC Tuesday said it now expects its full-year results will be above its previous expectations, after it reported strong growth in third-quarter earnings driven by strong revenue growth in both its US and UK operations.
The equipment rental company reported a pretax profit of GBP109.9 million for the three months to January 31, the third quarter of its financial year, up from GBP77.9 million a year earlier, as revenue rose to GBP512.9 million, from GBP400.1 million. Rental revenue rose by a quarter to GBP462.9 million, from GBP354.2 million.
That meant its pretax profit for the first nine months of the financial year was GBP369.1 million, up from GBP285.7 million a year earlier, which it said was a record level for the nine-month period.
The company said revenue rose 25% in its US Sunbelt business in the third quarter and 18% in its UK A-Plant business.
The profit growth came as it invested GBP783 million in capital expenditure and GBP162 million on bolt-on acquisitions in the nine months. It said it expects capital expenditure for the year as a whole to be at the top end of, or even slightly above, it previous guidance of GBP925 million to GBP975 million.
"Even with these significant levels of investment, we continue to grow responsibly, generating strong returns and maintaining leverage within our stated objectives," the company said. "We now anticipate a full year result ahead of our previous expectations and the board looks forward to the medium term with continued confidence."
By Steve McGrath; [email protected]; @stevemcgrath1
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