 saw profits rise 8 percent in the third quarter, after three months of strong performance.){kind=link}
Industrial rental agency Ashtead Group (LON:AHT) saw profits rise 8 percent in the third quarter, after three months of strong performance boosted by the weak pound.
Profit before tax rose to £178.7 million in the three months to 31 January, up from £139.1 million a year earlier. Rental revenue also increased by 14 percent to £729.2 million from £536.9 million, reflecting the company’s investment into a larger rental fleet.
The UK business A-Plant saw a 17 percent hike in rental revenue to £227 million from £193 million. The company was also boosted by strong performance in North America, with its construction division in the US, Sunbelt Rentals, seeing a 9 percent increase in rental revenue to $2.7 billion.
In a statement, chief executive Geoff Drabble attributed the results to the weaker sterling, adding that, “the underlying performance of the business continues to benefit from a clear and consistent strategy of organic growth supplemented by bolt-on acquisitions.”
“As is customary, we have given our early guidance to growth for 2017/18. This is consistent with the strategic plan we recently outlined to the market which anticipates circa double-digit growth in the US through to 2021. Our end markets remain supportive and we continue to benefit from ongoing structural change as our customers increasingly rely on the flexibility of rental.
“Both divisions continue to perform well. Accordingly, we expect full year results to be in line with our expectations and the Board continues to look to the medium term with confidence”, Drabble concluded.
Investors failed to be impressed by the figures however, with shares in Ashtead Group falling over 2.5 percent in early morning trading. The company is currently trading down 2.75 percent at 1699.00 (0849GMT).