News that construction equipment contractor Ashtead Group PLC (LSE:AHT) is bringing in WestRock alumnus Alex Pease as chief financial officer suggests that the FTSE 100-listed group is closer than ever to announcing a departure from the London Stock Exchange.
Pease, who led the finances at WestRock until its recent merger with Smurfitt Kappa, intends to stay put in Fort Mill, South Carolina, where he will join forces with Ashtead’s chief executive Brendan Horgan.
Pease will replace Brit Michael Pratt.
It is of little surprise that Ashtead is solidifying its US presence at the board level, given that rumours of the group joining the London exodus have been swirling for months.
If confirmed, Ashtead would join the likes of betting group Flutter, building materials supplier CRH and plumbing firm Ferguson as other big caps delisting from the LSE in hopes of superior valuations across the pond.
Ashtead made no additional comments upon request save for reiterating a previous press statement: "Ashtead reviews its capital structure regularly, including its domicile, recognising the fact that 90% of its business is in the US."
As Lucinda Riches, non-executive director at Ashtead said in June: "Ashtead is essentially a US business operationally, with over 90% of its revenue and over 95% of its operating profits being generated in North America."
Panmure Liberum analysts today weighed in and stated: “While we typically do not comment on changes in management, we believe it is worth flagging the change in CFO. We anticipate the appointment of a US-based CFO increases the likelihood of a US listing.”
Listing venue aside, Ashtead’s first-quarter results provided “first-quarter results provided “something for both the bulls and the bears”, the broker added.
“Within the mix, investors are likely to be pleased to see an improved rate of growth in Canada and the UK and the expansion in the group EBITDA margin.
“However, due to higher levels of depreciation and interest costs pre-tax profits are fractionally down.”