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Business & education services

Ashtead's potential US defection top of the annual results agenda

Ashtead Group PLC (LSE:AHT) (Ashtead Group PLC (LSE:AHT)) full-year results are due Tuesday with the plant hire giant mulling whether it, too, should shift its listing to the US.

Like peer CRH, which has already made the switch, Ashtead is effectively a US business anyway but its departure would be another blow to London’s standing.

Directors are concerned about a "significant" valuation gap to that of its US rivals, according to the reports.

Ashtead gets around 85% of its sales and more than 90% of its profits from its American Sunbelt operation, with the bulk of the rest coming from Canada and the A-Plant business in the UK

Shares also tend to mirror the mood surrounding the US economy, which will be even more in focus with Presidential elections coming around fast.

Consensus is for a 12% rise in annual sales to US$10.8 billion, up from $9.7 billion in fiscal 2023, with a 6% rise to US$11.4 billion lightly pencilled in for the current year.

Earnings forecasts have been dipping following low key trading updates in November and March, with a dip to US $2.1 billion now the average followed by a modest pick up to US$2.2 billion in the year to April 2025.

Ashtead has also increased its dividend every year since 2005, with a 5% rise expected in the final payment to match the interim increase.

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