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Ashtead Group reveals revenue and profit growth, but spending is at top end

Chief executive Geoff Drabble said: “we expect full year results to be in line with our expectations and the board continues to look to the medium term with confidence.”

Ashtead Group plc (LON:AHT) has revealed a positive trading performance as it reported third quarter results, highlighting a 20% rise in revenue.

The equipment hire firm generated £1.143bn of statutory revenue in the three months ended 31 January, up from £916mln, while over the first nine months of the financial year it brought in £3.39bn, up 19% from £2.81bn in the comparative period of the preceding year.

Quarterly statutory pre-tax profit totalled £240.9mln, measuring a 17% improvement on the prior year. Earnings (underlying EBITDA) amounted to £517.4mln for the quarter, up 21% from £408.8mln in 2018’s third quarter.

Pre-tax profit for the nine months was reported at £850.9mln, up 23%, while the nine month earnings figure was stated at £1.6bn, up 19%.

Ashtead highlighted sUBStantial investment during the period, with £1.29bn of capital invested, which was at the top end of guidance, and it spent some £491mln on bolt-on acquisitions.

“The group delivered a strong quarter with good performance across the group,” said Geoff Drabble, Ashtead chief executive.

“We continue to experience strong end markets in North America and are executing well on our strategy of organic growth supplemented by targeted bolt-on acquisitions.”

Drabble added: “Our business continues to perform well in supportive end markets.

“Accordingly, we expect full year results to be in line with our expectations and the board continues to look to the medium term with confidence.”

Source – Proactive Investors