Shares in US-focused hire company Ashtead (AHT) have fallen by about a quarter since late May due to warnings from competitors and nebulous fears that the American equipment-hire market may have become oversupplied. That backdrop meant the company’s first quarter trading update was always going to be significant, and in the event, few of the company’s fans will have been disappointed.
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Ashtead’s shares jumped 6 per cent on news that the three months to the end of July had seen sales rise 26 per cent and cash profits up 25 per cent whilst the group maintained its bumper margins. Trading in August has been good and management’s mood appears upbeat.
