Pre-tax profit soars at Ashtead in half yearly results - UPDATE

11th Dec 2012 07:42

Equipment rental group Ashtead unveiled strong first half yearly results on Tuesday morning, revealing pre-tax profit had risen by 64 per cent to 140.7m pounds compared to 84.4m pounds in the corresponding period last year.The group, which has a market capitalisation of £2,161m and is listed on the FTSE 250, stated that revenue had risen by 17% in the first half of the year 2012 and forecasted that its profit for the full year would exceed earlier predictions.Geoff Drabble, Chief Executive Officer at Ashtead, commented: "It is pleasing to report another quarter where strong revenue growth and ongoing operational efficiency have delivered record first half pre-tax profits of £141m. With this momentum clearly established in the business we now anticipate a full year profit ahead of our earlier expectations."Beyond the current financial year we remain well-placed to see growth over the medium term from either continued structural change or end market recovery. We are also generating high margins which, together with our much larger and younger fleet, results in an ability to fund significant growth whilst continuing to reduce leverage. Therefore, we expect net debt to EBITDA leverage to be sustained below two times."He added: "With a broad range of metrics already at record levels at this stage in the cycle, together with a strong balance sheet to support medium term growth opportunities, the Board looks forward with confidence."Commenting on the company's results analysts at Seymour Pierce are pointing out that: "In first half 2013 Ashtead reported a 56% increase in pre-tax profits against first half 2012 to £141m, which is quite an achievement in our view. Following this morning's better than anticipated second quarter 2013 results we are, once again, upgrading our estimated top of the range fiscal year 2013 adjusted profit before tax (PBT) forecasts by 8.5% to £219m. "We believe consensus will be moving from £186m to approximately £210m. The structural growth story remains unchanged in our view. The results presentation struck a confident tone and underpins our belief that there is still much more to come from Sunbelt."MF