"We have the most equipment out on rent that we've ever had in our history, even in this weak market." said Geoff Drabble chief executive of Ashtead and this was achieved with 15 per cent less staff than at 2008 peaks. With the average builder still unsure about the future and finding it impossible to get loans for equipment purchases, rental is king. Indeed, Ashtead's first half pre-tax profits more than tripled to £83m.
This combination of a stable construction sector and a lack of bank finance drove exceptional demand in the US. Ashtead's US division, Sunbelt, responded by increasing its fleet size and lifting hire prices; so while revenue rose 25 per cent, to £482m, operating profit soared by 67 per cent to £108m. Performance was slightly more muted in the UK division, A-Plant, as revenue was up 13 per cent, delivering operating profits of £5m. Spending on new fleet rose to £253m, up from £96m in the same period last year, which caused net debt to rise to £889m. Broker Numis upgraded estimates for full-year adjusted pre-tax profit by 30 per cent to £104m, from £78m, giving EPS of 13.6p. (2010: £31m/4p).