Latest news with #Ashtead
Business Recorder
3 days ago
- Business
- Business Recorder
European shares slide as Israel-Iran conflict shows no sign of cooling
European shares opened lower on Tuesday as the air war between Iran and Israel entered its fifth day, raising the risk of further unrest and pushing investors to safer assets. The pan-European STOXX 600 index was down 0.8% at 542.38 points by 0710 GMT. It had snapped a five-session losing streak on Monday. The Israel-Iran conflict extended to a fifth straight day on Tuesday, with U.S. President Donald Trump urging Iranians to evacuate Tehran, citing what he said was the country's rejection of a deal to curb nuclear weapons development. Trump had departed early from the Group of Seven summit in Canada but clarified that this it has 'nothing to do' with working on a ceasefire leaving investors with no clarity on the conflict. Oil prices ticked higher following the heightened tensions, before retreating. Energy shares outperformed peers, up 0.3%. European shares snap five-day losing streak All other sectors were in the red, with telecom firms leading declines at 1.4%. Among stocks, London's Ashtead was among the top percentage gainers despite forecasting a slowdown in rental revenue growth.
Daily Mail
4 days ago
- Business
- Daily Mail
Equipment supplier Ashtead sees sales dip ahead of US listing switch
Equipment Group Ashtead saw revenues dip last year ahead of its primary listing switch from London to New York, amid weaker demand for used construction gear. But Ashtead achieved record annual rental revenue and earnings thanks to activity related to hurricane relief and despite weakness in the US construction sector. The industrial equipment supplier revealed that its rental turnover increased by 4 per cent to $10billion in the year ending April, although its total sales slipped by 1 per cent to $10.8billion. Meanwhile, adjusted earnings before nasties rose by 3 per cent to $5billion and free cash flow skyrocketed from $216million the previous year to $1.8billion. Growth was bolstered by volume and rate improvement across its North American general tool and specialty divisions. Ashtead said hurricane response efforts contributed $25million to $30million in rental revenues for the former segment and between $60million and $70million for the latter. The 2024 Atlantic hurricane season was one of the costliest ever, generating an estimated $124billion in damages, according to the National Hurricane Center. Ashtead, whose product range includes diggers, refrigerated containers, and air conditioning units, gains higher demand for its goods following natural disasters in the US, where it trades under the name Sunbelt Rentals. It also supplies equipment for Hollywood film and television productions, such as cameras, dollies, and lighting. Brendan Horgan, chief executive of Ashtead, said: 'We continue to take advantage of strong secular tailwinds and structural progression, within our $87billion and growing industry.' He noted that while trading in the local non-residential construction sector remained subdued, mega-project activity 'continues to be robust,' especially in regards to the data centre, semiconductor and liquefied natural gas industries. Horgan added that Ashtead was due to switch its primary listing to New York in the first quarter of next year. Ashtead initially announced its intention to move stateside last December, citing the desire to enhance liquidity in its shares and boost access to US investors. The intended relocation represents another blow to the London Stock Exchange, which has struggled to attract new initial public offerings and seen many companies change their main listing in the hopes of higher valuations. In recent years, Paddy Power owner Flutter Entertainment and building materials firm CRH changed their primary listing to Wall Street, while travel giant TUI opted for Frankfurt. Just in the past month, drugmaker Indivior and fintech platform Wise said they would switch their main listing to New York. Ashtead Group shares were 0.6 per cent lower at £43.55 on Tuesday morning but have shrunk by around 12 per cent since the year began.
Forbes
4 days ago
- Business
- Forbes
Ashtead Shares Dip As Profits Fall Despite Record Rental Revenues
Photographer: Chris Ratcliffe/Bloomberg Rental equipment specialist Ashtead reversed on Tuesday, as tough market conditions forced profits lower despite record revenues. At £43.51 per share, the FTSE 100 company was last dealing 0.7% lower on the day. Lower equipment sales meant that headline revenue dropped 1% in the 12 months to March, to $10.8 billion. But record revenues across its core rental operations helped reduce the top-line reversal. Rental revenues at the Sunbelt Rentals owner increased 4% year on year, to $10 billion. Operating profit reversed 4% to $2.6 billion, while adjusted pre-tax profit dropped 5% to $2.1 billion. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) rose 3% to $5 billion. This was also a record high. Ashtead has operations in the US, Canada and the UK, though it generates the lion's share of revenues from customers in the States. At its North America General Tool unit, it said rental sales edged 1% higher to $4.9 billion thanks to 'both volume and rate improvement' which it said '[demonstrated] the benefits of our strategy of broadening our end markets.' On an organic basis, revenues were flat due to tough market conditions. Ashtead said that hurricane response efforts contributed around $25 million to $30 million to the top line. North America Specialty rental revenues, meanwhile, leapt 11% to $2.4 billion. Rental revenues in the UK rose 2%, to $599 million. Last year Ashtead invested $2.4 billion in the business, down from $4.3 billion in financial 2024. This was supported by near-record free cash flow of $1.8 billion, up from $216 million the year before. It spent $137 million on five bolt-on acquisitions 'to both expand our footprint and diversify our end markets,' it said. This was down from the $905 million it forked out on 26 purchases in financial 2024 as it slashed spending to reflect market conditions. Through a combination of dividends and share buybacks, Ashtead returned $886 million to shareholders, an all-time high. It raised the full-year dividend to 108 US cents per share from 105 cents previously. Chief executive Brendan Horgan commented that 'the strength of our foundation and growth strategy is reflected in our results and guidance today. I am excited for financial 2026 and what lies ahead as we continue to advance our great company.' Ashtead said it expects rental revenue growth of 0% to 4% during the current fiscal period. Capital expenditure is put at $1.8 billion to $2.2 billion, while free cash flow is predicted to range between $2 billion and $2.3 billion. Analyst Andy Murphy of Edison Group commented that 'while adjusted profit before tax fell… the group's underlying rental business remains robust. The Sunbelt 4.0 strategy continues to gain traction, with customer growth, network expansion, and margin improvements supporting medium-term optimism.' Murphy added that 'the proposed US primary listing remains a strategic milestone' for the current financial year. Ashtead plans to switch its primary listing from London to New York during the first quarter of the 2026 calendar year, whilst retaining a secondary listing in the UK. The Footsie company received the green light from 96.4% of shareholders at an extraordinary general meeting earlier in June. Royston Wild owns shares in Ashtead Group.
The Independent
4 days ago
- Business
- The Independent
Ashtead reveals profit dip amid weaker demand for used equipment
Equipment rental firm Ashtead has revealed a dip in profits and revenues on the back of weaker demand for used construction gear. The FTSE 100 company said this was partly offset by higher rental revenues although this growth also slowed amid pressure on the US construction sector. The update comes as Ashtead prepares to shift its primary stock market listing to New York from the start of the year, with plans to also change its name to Sunbelt. On Tuesday, Ashtead told shareholders that group revenues dropped by 1% to 10.8 billion dollars (£7.96 billion) for the year to April 30, compared with the previous year. It came after revenues dropped by 4% over the final quarter of the year despite an increase in rental sales. It also reported that pre-tax profits slipped by 5% to 2 billion dollars (£1.47 billion) for the year. Ashtead reported that its largest business division, North American general tools, grew by 1% over the year, as it received a boost of between 25 and 30 million dollars due to hurricane response works. Brendan Horgan, chief executive of the group, said: 'The group delivered record full-year rental revenue and adjusted earnings, with growth of 4% and 3% respectively. 'I'd like to thank the team for these results, while leading with our safety-first culture and engage for life programme, which are continuing to drive improvements in our safety metrics.' Chris Beauchamp, chief market analyst at IG, said: 'Ashtead has always been an interesting way for UK investors to get exposure to US economic growth, and it has certainly delivered impressive returns over the last decade. 'After nearly halving from last December's highs the shares seem to have found their footing, and while a US recession remains the major risk to the growth story there is still a lot to like in this morning's numbers.'
Yahoo
4 days ago
- Business
- Yahoo
Ashtead reveals profit dip amid weaker demand for used equipment
Equipment rental firm Ashtead has revealed a dip in profits and revenues on the back of weaker demand for used construction gear. The FTSE 100 company said this was partly offset by higher rental revenues although this growth also slowed amid pressure on the US construction sector. The update comes as Ashtead prepares to shift its primary stock market listing to New York from the start of the year, with plans to also change its name to Sunbelt. On Tuesday, Ashtead told shareholders that group revenues dropped by 1% to 10.8 billion dollars (£7.96 billion) for the year to April 30, compared with the previous year. It came after revenues dropped by 4% over the final quarter of the year despite an increase in rental sales. It also reported that pre-tax profits slipped by 5% to 2 billion dollars (£1.47 billion) for the year. Ashtead reported that its largest business division, North American general tools, grew by 1% over the year, as it received a boost of between 25 and 30 million dollars due to hurricane response works. Brendan Horgan, chief executive of the group, said: 'The group delivered record full-year rental revenue and adjusted earnings, with growth of 4% and 3% respectively. 'I'd like to thank the team for these results, while leading with our safety-first culture and engage for life programme, which are continuing to drive improvements in our safety metrics.' Chris Beauchamp, chief market analyst at IG, said: 'Ashtead has always been an interesting way for UK investors to get exposure to US economic growth, and it has certainly delivered impressive returns over the last decade. 'After nearly halving from last December's highs the shares seem to have found their footing, and while a US recession remains the major risk to the growth story there is still a lot to like in this morning's numbers.'
