Ashtead zooms past expectations

7th Sep 2010 07:19

Equipment rental group Ashtead trumped the market's profit expectations handsomely in the first quarter of its financial year.Underlying profit before tax in the three months ended 31 July was £11.9m, up 35% (18% at constant exchange rates) from £8.8m in the company's first quarter of 2009.That figure beat the most optimistic broker forecast of £7.4m.On an "as reported" basis profit before tax rose 70% (CER: 56%) to £14m from £8.2m the year before.Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose 10%, or 3% at constant exchange rates (CER), to £78.4m from £71.6m a year earlier.The company said both of its divisions saw a return to profit growth during the reporting period.Revenue rose 8% (CER: 2%) from £221.6m to £239.1m.Net debt at 31 July 2010 was £806m (30 April 2010: £829m) whilst the ratio of net debt to EBITDA was 3.1 times at 31 July 2010, unchanged from year end."August saw both Sunbelt and A-Plant perform in line with expectations and continue the pattern established in the first quarter," said Ashtead's chief executive Geoff Drabble."The business is delivering strong margins and gaining market share which, together with its financial strength, means that the board believes that Ashtead is well placed to benefit as markets recover," Drabble added.