Growth moderates in latest Ashtead quarterly results

Ashtead Group’s North American business reported flat growth in the three months to 31 January, ending a long series of high-growth year-on-year quarterly results for the business.

Sunbelt Rentals in the US saw revenues fall by 3.5% to US$2202.3 million, with rental revenues up 1% at $2060.4 million.

Its Canadian business reported revenues down by 7% to $158.1 million, while Sunbelt Rentals UK reported flat sales of $207.5 million for the quarter.

Ashtead, which is planning to switch its stock market listing from London to New York, saw group profits after tax of $309.7 million, down 7% from $332.3 million. EBITDA profit was 1% up at $1177 million.

Ashtead’s chief executive, Brendan Horgan, said North American mega projects and hurricane response activity had more than offset a decline in commercial construction markets, which were being impacted by higher interest rates.

“However, underlying demand continues to be strong and we expect this segment to recover as interest rates stabilise”, said Horgan, who added; “We are in a position of strength, with the operational flexibility and financial capacity to take advantage of the ongoing structural growth opportunities we see for the business and enhance returns to shareholders as we follow our Sunbelt 4.0 plan.

“We expect full year results in line with our previous expectations and the Board looks to the future with confidence.”