- Revenues continue to top estimates
- ‘Substantial structural growth opportunities’ ahead
- Company lifts outlook for second time this year
Equipment rental firm Ashtead (AHT) confirmed its reputation as one of the best-managed companies in the FTSE 100 with its latest results and another increase in full year guidance.
The shares topped the list of large-cap movers with a gain of 3% to £51.84 against a weak market backdrop.
WHAT DID THE COMPANY SAY?
Reporting its results for the six months to the end of October, the firm recorded a 26% increase in total revenues to $4.8 billion, underpinned by a similar increase in rental revenues, and a 35% increase in pre-tax profits to $1.24 billion.
Moreover, the company revealed growth had accelerated in the second quarter with revenues up 28% to $2.54 billion and pre-tax profits jumping 40% to $658 million.
On top of its organic growth, the group invested $1.7 billion across existing locations and greenfield sites and spent $609 million on 27 bolt-on acquisitions.
‘This significant investment is enabling us to take advantage of the substantial structural growth opportunities that we see for the business as we deliver our strategic priorities to grow our general tool and specialty businesses and advance our clusters’, said chief executive Brendan Horgan.
RAISNG GROWTH FORECASTS AGAIN
Horgan added: ‘Our business is performing well with clear momentum in robust end markets. We are in a position of strength and, with increased market clarity, have the operational flexibility to capitalise on the opportunities arising from the market and economic environment we face, including supply chain constraints, inflation and labour scarcity, all factors driving ongoing structural change.’
Thanks to the better-than-expected first half performance, the firm now sees full year rental revenue growth topping its previous expectations.
