Following the devastation caused by hurricanes Harvey and Irma, it is unsurprising that equipment hire group Ashtead (AHT) reckons there will be increased demand for its tool fleet. In its first-quarter update management said the onset of hurricane season has already "generated significant activity, which will require a major clean up and then a multi-year rebuild programme”. The group generates around 87 per cent of its sales in North America.
The announcement revealed strong trading during the three months to July 2017, which saw underlying rental revenue climb 17 per cent to £829m and operating profit increase a fifth to £267m. Chief executive Geoff Drabble said it was too early to quantify the impact from the hurricanes, but it would at least underpin confidence in the group’s medium-term plan.
