Ashtead Group Plc (LSE:AHT) announced a record performance in the first six months and predicted that full-year results will exceed its previous forecast.
The equipment rental company saw revenue grow by 18% to US$3.88bn in the six months to 31 October 2021 and by 15% to US$2.03bn in the second quarter.
Rental revenue surged by 20% to US$3.54bn in the first half compared with last year and was 14% higher than the same period in pre-pandemic fiscal 2019/20.
In the US, rental revenue continued to outperform the market with growth of 16% compared with last year and 9% compared with two years ago.
In the UK, rental revenue was up 18% on the prior year, boosted by work for the Department of Health in its COVID-19 response efforts, but also by a strong performance in the core business.
The company is currently supporting around 500 COVID-19 testing sites in the UK. This support is expected to continue through the winter before reducing significantly in the spring.
EBITDA rose by 18% to US$1.83bn in the first half and by 12% to US$972mln in the second quarter.
Pre-tax profit was 38% higher at US$890mln in the first six months.
The company raised its interim dividend by 28% to 12.5 cents per share.
During the period, Ashtead invested US$1.2bn in capital across its existing locations and greenfields and spent US$428mln on 10 bolt-on acquisitions, adding 58 locations in North America.
The company said it has a “healthy bolt-on pipeline” and has already invested a further US$320mln in the third quarter.
“Our business has strong momentum in supportive markets. The benefit we derive from the diversity of our products, services and end markets, our investment in technology and ongoing structural change, enhanced by the environmental and social aspects of ESG, enables the board to look to the future with confidence,” said Ashtead's chief executive, Brendan Horgan.
“Notwithstanding the volatility that continues to arise from COVID, the fundamentals of our business are strong and we now expect full-year performance to be ahead of our previous expectations."