Profits rise at equipment hire group

Ashtead’s U.S. division, Sunbelt, which accounts for about 86 per cent of revenue, reported a 14.2 per cent rise in underlying pre-tax profit.

The company said a weaker sterling had positively impacted results by £17m.

Ashtead said underlying pre-tax profit rose to £183.6m in the first quarter ended July 31, up from £160.7m a year earlier.

The pound has fallen to the lowest level against the dollar in more than 30 years since Britain’s Brexit vote in late June.

Group rental revenue jumped 12 per cent to £660.8m, the company said.

Geoff Drabble, chief executive of Ashtead, said: “The continued improvement in our margins is particularly encouraging - with Group EBITDA now a record 48 per cent. These healthy margins and our strong balance sheet provide flexibility to continue to invest in our long-term structural growth opportunity and enhance returns to shareholders.

“We will continue to grow responsibly, adhering to the capital allocation priorities we have outlined. We have therefore invested £328m by way of capital expenditure and a further £64m on bolt-on acquisitions.”