Ashtead lifts full year view

4th Sep 2013 07:11

Equipment rental company Ashtead Group booked a 24 per cent hike in first quarter revenue, amid strong demand and a tight control on costs, and now expects a full year result ahead of previous expectations.Revenue increased to £410.5m for the first quarter ended July 31st 2013 from £325.0m a year earlier. Pre-tax profit surged 59% to a record £99.5m.Sunbelt's rental revenue increased 25% during the period, driven by a 17% increase in average fleet on rent and 6% improvement in yield as the US construction sector continues to pick up.Ashtead said its strong performance continued in August and along with a robust balance sheet and as a result expects a full year result ahead of the company's previous expectations.Net debt to EBITDA (earnings before interest, tax, depreciation and amortisation) leverage of 2.1 times compared to 2.4 times in 2012.Chief executive Geoff Drabble said: "This performance is being driven by strong revenue growth and operational efficiency as demonstrated by the improvement in margins and return on investment."Our focus remains on organic growth with £279m of capital expenditure in the first quarter. Whilst we continue to invest significantly in the business, our strong margins allow us to do this while delevering."CJ