Ashtead – Not Immune From Supply Struggles

0
Ashtead – Not Immune From Supply Struggles
3844328 / Pixabay

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%.

Get The Full Ray Dalio Series in PDF

Get the entire 10-part series on Ray Dalio in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

Q2 2021 hedge fund letters, conferences and more

ValueWalk’s November 2021 Hedge Fund Update: Rokos Capital’s Worst-Ever Loss

InvestWelcome to our latest issue of issue of ValueWalk’s hedge fund update. Below subscribers can find an excerpt in text and the full issue in PDF format. Please send us your feedback! Featuring hedge fund assets near $4 trillion, hedge funds slash their exposure to the big five tech companies, and Rokos Capital's worst-ever loss. Read More

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


About Hargreaves Lansdown

Over 1.64 million clients trust us with £135.5 billion (as at 30 June 2021), making us the UK’s largest digital wealth management service. More than 98% of client activity is done through our digital channels and over 600,000 access our mobile app each month.

Updated on

Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver
Previous article Australia’s Coal Sector Looks To Dig Itself Out Of A Funding Hole
Next article False Dawn Or Not

No posts to display