Annual results from parent company Ashtead Group show that Sunbelt Rentals nearly doubled its UK profits and increased revenue by 35%.
In the year to 30th April 2021 Sunbelt Rentals UK made an operating profit of 拢60.9m (2020: 拢36.4m) on revenue of 拢635.1m (2020: 拢469.2m).
The company said that the results 鈥渞eflect the higher level of ancillary and sales revenue associated with the work for the Department of Health, which accounted for c. 29% of UK revenue in the year鈥�.
That reveals that Sunbelt UK was paid 拢184m for Covid response work during the year, of which 拢74m was made in the fourth quarter (February-April) when the vaccination programme was ramping up.
The UK business generated rental only revenue of 拢362m, an increase of 10% on a comparable basis (2020: 拢349m).
Despite the strong result, the improved operating margin of 9.6% (2020: 7.8%) was still way off what Ashtead achieves in North America 鈥� 26.7% in the USA last year and 19.5% in Canada.
Total revenue for Ashtead Group, including Sunbelt US and Sunbelt Canada, was 拢5,031m, from which it made a pre-tax profit of 拢936m.
Ashtead chief executive Brendan Horgan said: 鈥淲e have shown that our business can perform in both good times and more challenging ones.聽 We enter the new financial year with clear momentum, strong positions in all our markets, supported by high quality fleet, a strong financial position and our exciting new Sunbelt 3.0 strategic plan, positioning us well to respond to market conditions and capitalise on opportunities.聽 We will invest to drive long-term sustainable growth and returns and strengthen the business.聽 The benefit we derive from the diversity of our products, services and end markets, our investment in technology and ongoing structural change, enhanced by the environmental and social aspects of ESG, enables the board to look to the future with confidence."
In recognition of the fact that Ashtead has more than 80% of its business in the USA (and gets 90% of its profits there), the board has finally taken the decision to report its results in US dollars in future, instead of the currency of its original parent country.
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