Ashtead said annual performance would beat its previous expectations as the equipment hire company reported a 53% increase in operating profit for the first quarter.
Operating profit fr the three months to the end of July rose to $477m from $311m a year earlier at constant currency as revenue increased 21% to $1.85bn. Statutory pretax profit rose 74% to $416m.
Revenue rose 13% at constant currency from the first quarter two years earlier when trading was unaffected by the pandemic.
Performance was driven by the US where adjusted operating profit jumped to $432.1m from $324.1m a year earlier based on higher volumes and rates. UK profit rose to £44m from £10.4m and Canada contributed $28.2m.
Ashtead said it expected annual rental revenue to increase by 13-16% – up from earlier guidance of 6-9%. The company upgraded guidance for capital spending to $2-2.3bn from $1.9-2.2bn and predicted free cash flow of $900m-1.1bn – up from $800m-1.1bn.
Chief Executive Brendan Horgan said: “Our business is performing well in supportive markets. The benefit we derive from the diversity of our products, services and end markets, our investment in technology and ongoing structural change … enables the board to look to the future with confidence and we now expect business performance this year to be ahead of our previous expectations.”
