Ashtead Group PLC (LON:AHT), which owns the A-Plant and Sunbelt machinery hire businesses, expects its results for the full-year to be ahead of current market expectations.
Rental growth has been strong, while its foreign earnings have been boosted by the weak pound.
The update was given alongside first-half results, which showed revenues grew by 14% to £1.44bn, giving underlying pre-tax profits of £426mln (up 9%).
Ashtead’s net debt grew to £2.7bn from £1.98bn a year ago – but it says it is comfortable with this figure, which comes in at 1.8-times operating profit.
The dividend is raised by almost a fifth to 4.75p a share.
The growth was generated from a mix of organic expansion and bolt-on acquisitions both here and in the US.
“Both divisions continue to perform at the upper end of expectations,” said chief executive Geoff Drabble.
“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."
The shares opened 2% stronger at £15.70.