Ashtead Group PLC (LSE:AHT) was in upbeat mood as it reported half-year numbers forecasting full-year results would be “ahead of our previous expectations.”
“Our business is performing well with clear momentum in robust end markets” the company said.
The construction equipment hire group posted a 26% rise in half-year revenue to $4,796mln which combined with strong operational execution, resulted in adjusted profit before tax increasing by 27% to $1,243mln.
Rental-only revenue in the US improved by 26% to $2,952mln with organic growth of 20% while bolt-ons contributed 6%. The general tool business grew 22%, while the specialty businesses grew 34%.
Rental-only revenue growth has been driven by both volume and rate improvement in what continues to be a good rate environment, the FTSE 100-listed company commented.
Rental revenue increased by 28% to $3,774mln with US total revenue, including new and used equipment, merchandise and consumable sales, up 30% to $4,069mln.
The UK business generated rental-only revenue of £215mln, up 6% on the prior year, while Canada's rental-only revenue increased by 20% to C$279mln.
But inflationary pressures have fed through to lower EBITDA margins of 49.1% down from 50.2%.
Adjusted EPS jumped 32% to 212.2 US cents while shareholders were rewarded with a 20% hike in the dividend to 15 US cents.
In the results statement, Ashtead's chief executive, Brendan Horgan, commented: “We now expect full-year results ahead of our previous expectations and the Board looks to the future with confidence."