Ashtead Reports Rental Revenues Up Significantly in Second Quarter

Ashtead Group plc, parent of US-based Sunbelt Rentals, reported first-half and second-quarter rental revenues are up 13% year over year.

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Ashtead Group plc, parent of US-based Sunbelt Rentals, reported first-half and second-quarter rental revenues are up 13% year over year. 

“The Group delivered a strong quarter with reported rental revenue increasing 28% (13% at constant exchange rates) for the six months and underlying pre-tax profit of £426m," reports Ashtead’s chief executive, Geoff Drabble. "The underlying performance of the business continues to benefit from a clear and consistent strategy of organic growth supplemented by bolt-on acquisitions. In the six months, the reported results were positively impacted by weaker sterling (£53m) but this was partially offset by the impact of lower gains on fleet disposals (£14m) as we reduced our replacement capital expenditure."

He continues, "I am pleased with the continued improvement in our margins – Group EBITDA margin is now a record 49% (2015: 47%). 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 continue to grow responsibly, adhering to the capital allocation priorities we have outlined. We have therefore invested £683m by way of capital expenditure and a further £142m on bolton acquisitions. With the continuing opportunity for profitable growth, we have increased our full year capital expenditure guidance. In addition, we spent £48m under the share buyback program and increased the interim dividend by 19%. All of this was achieved whilst maintaining leverage well within our stated range of 1.5 to 2.0 times net debt to EBITDA. Both divisions continue to perform at the upper end of expectations. This, together with the benefit of significantly weaker sterling, means we expect full year results to be ahead of our expectations and the Board continues to look to the medium term with confidence.”

For more about Ashtead's latest financial report...

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