A record third quarter for Ashtead

By Maria Hadlow06 March 2012

For its third quarter (ending 31 January 2012) The Ashtead Group has reported record profits, and good progress across the board - particularly for its USA Sunbelt division.

Ashtead's chief executive, Geoff Drabble, said, "Once again, we are pleased to report a strong set of results. Our record third quarter pre-tax profit of £21m (2011: £2m loss), whilst undoubtedly being helped by favourable weather conditions, is predominantly due to the continuation of the momentum we have established over recent quarters.

"We continue to invest strongly in organic growth, with our rental fleet now being 11% larger and an average of five months younger than a year ago. However, with a continued focus on margin improvement, this investment has been accompanied by a reduction in net debt to EBITDA leverage to 2.5 times (2011: 2.8 times)."

In the last nine months of trading Sunbelt has generated a revenue of £708.5 million - an increase of 21% and A-Plant's revenue went up 14% to £138.3 million. Both divisions showed an operating profit up more than 70% over the same period in 2011 Sunbelt's to £143.5million and A-Plant's to £5.4million.

Ashtead said it has continued to invest heavily to support growth: capital expenditure for the nine months was £336m gross and £276m net of disposal proceeds. As a result the average age of the Group's rental fleet at 31 January 2012 was 40 months (2011: 45 months). Sunbelt's fleet size at 31 January of $2.3bn was 10% larger than a year earlier whilst average nine month utilisation grew to 72% (2011: 69%).

For this fiscal year Ashtead anticipates spending around £425m and the plan for next year is £500m.

MAGAZINE
NEWSLETTER
Delivered directly to your inbox, Access, Lift & Handlers Newsletter features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
Featured Training From Easybook
NYC SST Online Training

The clock is ticking… Construction workers in New York City – have you fulfilled your required Site Safety Training (SST)? Get your SST card online now

Latest Events
Last chance to register for the virtual ALH Conference
The ALH Conference is set to kick off (virtually) at 9 a.m. CST on Tuesday, Sept. 14. This is your last chance to register for the live event
ALH Conference shifts to virtual format
The ALH Conference, set for September 14, will be held online, ALH and KHL Group have announced. Registration is now open
ARA Show: Rental-ready
The ARA Show will return to Las Vegas this October for the first time in eight years. ALH provides a preview to the all-things-rental event.
Off-Highway Research

The gold standard in market research

Off-Highway Research offers a library of more than 200 regularly updated reports, providing forensic detail on key aspects of the construction equipment industry.

Our detailed insights and expert analyses are used by over 500 of the world’s largest and most successful suppliers, manufacturers and distributers, to inform their strategic plans and deliver profitable growth.

Click here to visit our website

CONNECT WITH THE TEAM
Lindsey Anderson Editor, Access, Lift & Handlers Tel: +1 312 929 4409 E-mail: lindsey.anderson@khl.com
Tony Radke Sales Manager Tel: +1 480 478 6302 E-mail: tony.radke@khl.com
CONNECT WITH SOCIAL MEDIA