Equipment hire group, Ashtead reported a 2 per cent revenue increase in the first quarter at constant currencies, as the US and UK operations both returned to volume growth.
IC TIP:
Sell
at
99p
Lower costs, due to efficiencies implemented last year, and a lower depreciation charge on a smaller fleet, meant underlying pre-tax profits grew by 35 per cent to £11.9m. The US-based business Sunbelt saw higher used equipment sales as the previously flagged £175m fleet investment process was stepped up. And against expectations of a lacklustre UK market, volumes there were up a surprising 3 per cent. But price negotiations with clients last year caused overall revenues to fall year on year.
What we said: Sell
When: 10 Sept 2009
Price: 93p
Performance: -6.4%
