9th Dec 2015 07:08
LONDON (Alliance News) - Industrial equipment rental company Ashtead Group PLC on Wednesday said its pretax profit and revenue both surged in the first half with good performances from its US and UK divisions, prompting a 33% hike to its interim dividend and the company to say its full-year results should beat its previous expectations.
The FTSE 100-listed company said its pretax profit for the half to the end of October rose to GBP176.5 million from GBP141.7 million a year earlier, as total revenue rose to GBP648.9 million from GBP529.4 million.
Ashtead's underlying, constant currency rental revenue grew 17% in the first half, driven by a further strong performance from its Sunbelt unit in the US, where rental revenue increased 22%, despite the group facing some challenge from the slowdown in oil and gas markets, which will continue into the third quarter.
Thanks to the robust results, Ashtead lifted its interim dividend 33% to 4.00 pence per share from 3.00p a year earlier.
"With both divisions performing well, strong end markets and our strategy clearly working, we now anticipate a full year result ahead of our previous expectations and the Board looks forward to the medium term with confidence," said Chief Executive Geoff Drabble.
By Sam Unsted; [email protected]; @SamUAtAlliance
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