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The Markets
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Business & education services

Ashtead slumps after raising caution on outlook

Ashtead Group PLC (LSE:AHT) fell over 8% in early trading after the industrial equipment rental firm said slow third-quarter trading meant revenue growth would be at the low end of expectations.

Rental revenue growth in North America was constrained by longer-than-expected strikes by actors and writers, the FTSE 100 firm said in an update, alongside lower emergency response activity to natural disasters.

As a result, full-year rental revenue growth will likely sit at the lower end of the 11% to 13% guided range.

Revenue for the three months to January climbed by 9% to US$2.7 billion, Ashtead added, though operating profit slipped 3% to US$591 million.

Shares slipped 8.3% to 5,250p.

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