Ashtead raises its outlook after profits soar to an all-time high

 
Suzie Neuwirth
INDUSTRIAL equipment hire firm Ashtead yesterday unveiled an 87 per cent jump in annual profits, thanks to the burgeoning recovery of the US construction market.

The FTSE 250-listed firm raised its profit forecast for the coming year as a result, also benefitting from a structural change in the US towards renting equipment.

Pre-tax profits rose to a record high of £247m for the year ended 30 April and revenue rose 19 per cent to £1.36bn.

“We’re benefitting from the start of a cyclical recovery in the US and there is plenty of growth ahead,” chief executive Geoff Drabble told City A.M. “We will supplement this growth with a few bolt-on acquisitions, when good opportunities present themselves.”

Ashtead’s share price closed five per cent higher at 658.50p.