Ashtead group pretax profit jumps 26%

Ashtead Group reported underlying pre-tax profits of £205.1m during the third quarter, up 26% from £178.7m in the prior period.

Rental revenues rose to £845.5m from £729.2m - up 24% at constant currencies - and EBITDA increased to £408.8m, up 20% from £366.9m.

On a statutory basis, revenues rose to £916.1m from £804.5m and pre-tax profits of £194.3m were up from £171.2m.

Nine month underlying pre-tax profit rose to £742m from £604.6m, while revenues of £2,619.5m were up 21% from £2,173.8m.

Ashtead's chief executive, Geoff Drabble, said: 'The Group continues to perform well and delivered another strong quarter with reported rental revenue increasing 21% for the nine months and underlying pre-tax profit increasing by 24% at constant currency to £742m.'

'Our end markets remain strong and a wide range of metrics have shown consistent improvement. We continue to execute well on our strategy through a combination of organic growth and bolt-on acquisitions, investing £859m by way of capital expenditure and £315m on bolt-on acquisitions in the period.'

'With the continuing opportunity for profitable growth, we expect capital expenditure for the year to be towards the upper end of our guidance (c. £1.2bn). Looking forward to 2018/19, we anticipate a similar level of capital expenditure to this year as we execute on our strategic plan through to 2021.'

'All our divisions continue to perform well in supportive end markets. While currency continues to be a headwind, we expect this to be mitigated by the strong underlying performance in North America. Therefore, we anticipate full year results to be line with prior expectations.'