Ashtead opening 100 new depots a year in North America
By Lewis Tyler05 September 2023
Ashtead Group is on course to expand its Sunbelt depot network in North America to 1,234 locations by April 2024.
The company plans to add more than 298 locations through organic growth and acquisitions between April 2021 and April 2024 as part of its Sunbelt 3.0 plan.
It added 40 new sites in the first quarter of its financial year to 31 July, of which 16 were through acquisitions.
Ashtead said there was “clear momentum” in the North American market, backed by the large number of mega projects and legislative acts in the US.
US revenue for the first quarter was up by 22% to US$2.3 billion, while Canada saw an increase of 21% to C$213 million.
In contrast, there was a 2% decline in overall revenue to £178 million for Sunbelt Rentals UK, although rental revenue saw a slight increase of 1% to £150 million. The full-year guidance on growth for the UK business has been reduced to 6% to 9%, from the previous range of 10% to 13%.
Total group EBITDA profit grew by 18% to $1.23 billion, with operating profits of $733 million.
Ashtead has not changed its guidance on gross capital expenditure on rental fleet, which will be in the range of US$3.3 to $3.6 billion. There will be a further approximately $650 million in capital expenditure not related to fleet.
Ashtead CEO Brendan Horgan said, “The Group delivered another record quarter with revenue up 19%, rental revenue growth of 14% and adjusted profit before tax increasing 11%, both at constant currency.
“This strong performance is only possible through the dedication of our team members who deliver for all our stakeholders every day, while ensuring our leading value of safety remains at the forefront of all we do.”
Horgan said that the company is in a “position of strength” to capitalise on opportunities arising from favourable market conditions in North America. On the UK, he said that despite some softening the company expects overall performance to be in line with expectations.”