US rental growth lifts Ashtead

16th Jun 2011 07:16

Plant hire group Ashtead reported full year pre-tax profit in line with expectations and said it is confident demand for rentals will provide further growth.Pre-tax profit rose to £31m for the year to the end of April compared to £5m in 2010, after a 10% increase in revenue from US rental operations. Analysts had predicted pre-tax profit of £30.7m. Ashtead said the increasing trend of contractors renting out equipment rather than buying it had boosted results.Its US business saw growth in fleet and prices and had a first-time contribution from Empire Scaffold, which it bought at the start of 2011.Looking ahead chief executive Geoff Drabble said, "We remain cautious over the outlook for end construction markets in the short term, particularly in the UK. However, we continue to benefit from the structural shift to rental, market share gains and the improvements we have established in all key areas of our business." A final dividend of 2.07p has been recommended, making 3p for the year compared to 2.9p in 2010.CJ