Ashtead Group expects full year results ahead of expectations
Ashtead Group's (LON:AHT) shares were up more than 15 percent this morning after the firm released very strong first quarter results.
The firm, which operates A-Plant - the third largest equipment rental company in the UK - told investors it now expects full year results "substantially ahead" of its previous expectations.
In the three months to July 31, the firm saw rental revenue increases in both its brand names - Sunbelt in the US (up 21 percent) and A-Plant in the UK (up 12 percent).
Operating profit stood at £46.2 million compared to £30.2 million in the same period in 2010, said the firm.
Pre-tax profit of £34 million was up 211 percent at constant exchange rates on last year's figure of £11.9 million.
EPS stood at 4.2 pence for the quarter, compared to 1.8 pence a year earlier.
The company's chief executive Geoff Drabble said: "Our end construction markets continue to behave in line with our expectations and now appear to be broadly flattening after two years of significant decline.
"Against this backdrop, the 21 percent rental revenue and 67 percent profit growth achieved at Sunbelt show that we are clearly benefitting from the ongoing structural change in the US rental market.
"Sunbelt has also now delivered 15 consecutive months of year on year rental revenue growth.
"These structural trends are likely to continue with further increases in rental penetration and Sunbelt's market share expected."
Looking ahead, the company said: "August saw both Sunbelt and A-Plant deliver good year-on-year revenue and profit growth continuing the pattern established in the first quarter.
"Given the on-going structural change in the US rental market and the strong current performance, the board now anticipates a full year result substantially ahead of its previous expectations."
As at 9.2 am the firm's shares were trading 15.27 percent up - at 129.10 pence.