AEDNews - Construction Equipment Industry News|
Sunbelt Contributes to Record Profit at Ashtead
Ashtead Group, parent company of Sunbelt Rentals, reported that revenue improved by 20 percent to £1,135m (2011: £949m) reflecting strong growth in fleet on rent and yield in the US. This revenue growth, continued cost control, lower net financing costs and the business improvement programmes initiated over the last three years combined to generate record underlying pre-tax profits of £131m (2011: £31m). Exchange rate fluctuations did not have a significant effect on year on year comparisons.
Rental revenue grew 23 percent in Sunbelt to $1,335m (2011: $1,084m) including a 13 percent increase in average fleet on rent and 7 percent growth in yield. Combined with new and used equipment, merchandise and consumable sales, Sunbelt's total revenue also grew 23 percent to $1,507m (2011: $1,225m). A-Plant's rental revenue growth was 9 percent to £168m (2011: £154m). Fleet on rent grew 1 percent with yield increasing by 6 percent.
The strong performance seen all year at Sunbelt continued in the fourth quarter when Sunbelt's rental revenue grew 19 percent including 13 percent growth in fleet on rent and 6 percent yield improvement. A-Plant's Q4 rental revenue growth was 5 percent reflecting 3 percent yield improvement and a 1 percent increase in fleet on rent.
"We are delighted to report record Group profits, encouragingly delivered against a backdrop of end construction markets remaining at historically low levels," said Geoff Drabble, chief executive of Ashtead Group.
For the complete financial results visit http://www.ashtead-group.com.
Article Date: 2012-06-25
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