Latest news with #BrendanHorgan
Daily Mail
11 hours 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.
The Independent
11 hours 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
11 hours 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.'
