Ashtead profit slumps 77%

8th Sep 2009 07:20

Industrial equipment rental firm Ashtead saw pre-tax profits plunge in the quarter to July 31 as tough economic conditions forced customers in the US and UK to scale back spending.The firm, which rents out drills, turf cutters and flood lights, saw profit before tax slide to £8.2m from £35.2m over the same quarter the previous year as revenues fell to £221.6m from £273.4m.Cost cutting actions, such as staff reductions, helped Ashtead stay profitable. Chief executive Geoff Drabble said he expects trading levels to be similar over the subsequent quarter, while visibility over the following half year is less clear.Revenues at A-Plant, Ashtead's UK business, fell to £42.6m from £59.6m, while Sunbelt, the US business, saw sales fall to £179m from £213m.