Ashtead Group plc (LON:AHT)’s first quarter revenue rose 21% to $1.9bn, reflecting a 22% jump in Rental revenue, which makes up 90% of the group total. Compared to pre-pandemic levels, Rental revenue was up 12%.
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Operating profits rose 53% to $477m.
Ashtead now expects full year Rental revenue to rise 13 – 16%, up from 6%-9%, as Canada and the UK are surpassing expectations.
The shares rose 2.9% following the announcement.
A Look At Ashtead's Numbers
“Ashtead is a textbook cyclical company. Renting out industrial and construction equipment means when the economy grinds to halt, so does Ashtead’s business. That’s partly why the numbers look so flattering this quarter against the very tough conditions of last year.
What’s more impressive is the group’s ramping up of bolt-on acquisitions. Well-executed deals of this kind tend to be good news for the top and bottom line, and it’s testemant to the newly helpful market conditions that Ashtead feels able to loosen the purse strings.
The group hasn’t avoided the supply chain issues which are being felt across the globe. An inability to get its hand on new equipment as planned means the average age of the fleet has increased slightly. This is by no means a huge cause for concern, but will become more problematic if it’s a trend that doesn’t reverse sooner rather than later.”
Article by Sophie Lund-Yates, equity analyst at Hargreaves Lansdown
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