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Ashtead Group reveals revenue and profit growth, but spending is at top end

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Chief executive Geoff Drabble said: "we expect full year results to be in line with our expectations and the board continues to look to the medium term with confidence."

Ashtead Group plc (LON:AHT) has revealed a positive trading performance as it reported third quarter results, highlighting a 20% rise in revenue.

The equipment hire firm generated £1.143bn of statutory revenue in the three months ended 31 January, up from £916mln, while over the first nine months of the financial year it brought in £3.39bn, up 19% from £2.81bn in the comparative period of the preceding year.

Quarterly statutory pre-tax profit totalled £240.9mln, measuring a 17% improvement on the prior year. Earnings (underlying EBITDA) amounted to £517.4mln for the quarter, up 21% from £408.8mln in 2018’s third quarter.

Pre-tax profit for the nine months was reported at £850.9mln, up 23%, while the nine month earnings figure was stated at £1.6bn, up 19%.

Ashtead highlighted sUBStantial investment during the period, with £1.29bn of capital invested, which was at the top end of guidance, and it spent some £491mln on bolt-on acquisitions.

"The group delivered a strong quarter with good performance across the group,” said Geoff Drabble, Ashtead chief executive.

“We continue to experience strong end markets in North America and are executing well on our strategy of organic growth supplemented by targeted bolt-on acquisitions.”

Drabble added: “Our business continues to perform well in supportive end markets.

“Accordingly, we expect full year results to be in line with our expectations and the board continues to look to the medium term with confidence."

Source - Proactive Investors

About the author

Philip Scott

Head of Equities, Director

Philip has worked as a Private Client Stockbroker for nearly 20 years, commencing his career in Operations with Rensburg Sheppards (now part of Investec plc) before spending 9 years with Killik & Co advising on and directly managing portfolios. He joined SI Capital in 2006 to head up the Private Client Advisory desk.

Philip is a regular contributor to local media commenting on stock market dynamics and is a Chartered Member of the Chartered Institute for Securities & Investment (MCSI). His RDR qualification gained special recognitionfrom the CISI for achieving the highest combined pass mark in the country for the Investment Advice Diploma in 2012.

“At SI Capital I enjoy being part of a talented team who collectively share the same desire to provide excellence in service.  My focus is to ensure that each client receives effective and optimal management of their assets.”

Philip lives locally, is married with 2 daughters and is an avid sports fan (if now predominantly from the sidelines).  His other interests include music and film.

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