Specialty growth helps Ashtead results
By Lewis Tyler16 June 2023
A 22% increase in its rental revenue has seen Ashtead Group post record revenues of $9.6 billion (€8.7 billion) for the year to 30 April 2023, a 24% increase.
As expected, the US remains its largest market and accounts for $8.2 billion of the total with a profit of $2.4 billion, while the UK generated $822 million and profits of $78 million.
Rental only revenue performed particularly well in the US, which saw an increase of 23%. According to Ashtead, much of the increase is attributed to the “benefits of our strategy of growing our Specialty businesses and broadening our end markets.”
Elsewhere, rental only revenue in the UK through Sunbelt Rentals UK generated revenues of £429 million ($548 million) at a growth rate of 6%, although Ashtead says that when excluding the conclusion of the work for the Department of Health, which ended during the first quarter of 2022/23, rental only revenue increased 22%.
The fourth quarter of the year also saw significant growth, with revenues increasing by 19% to $2 billion, while profit before tax was up by 21% to $466 million.
Ashtead’s chief executive, Brendan Horgan, said, “I am delighted to report another year of strong performance across all geographies, with rental revenue growth of 22% for the year at constant currency, delivering record revenue and profitability for the Group.
“This market outperformance 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.”
Moving forward, Horgan says the company is “in a position of strength, with the operational flexibility and financial capacity to capitalise on the opportunities arising from strong markets and ongoing structural change. The Board looks to the future with confidence.”