A-Plant鈥檚 rental revenue was up 16% to 拢152m (2015: 拢131m) for the six months to 31st October 2016.聽 But with less equipment being sold out of the fleet in the period, total revenue increased by only 12% to 拢199m (2015: 拢178m).
Profit before interest, tax, depreciation and amortisation (Ebitda) was up 11% to 拢76.2m (2015: 拢68.9m). Operating profit was up 8% to 拢37.9m (2015: 拢35.0m).
Parent company Ashtead Group, which also owns the much larger Sunbelt equipment hire business in the USA, made a first-half pre-tax profit of 拢413.3m, up 9% on last year鈥檚 拢331.9m. Group revenue was up 8% to 拢1,551.7m for the six months.
On 22nd November, after the reporting period, A-Plant acquired certain assets of Hewden Stuart from EY, the administrator, for 拢29m. It seems further acquisitions can be expected.
Ashtead chief executive Geoff Drabble said: 鈥淭he underlying performance of the business continues to benefit from a clear and consistent strategy of organic growth supplemented by bolt-on acquisitions.聽 In the six months, the reported results were positively impacted by weaker sterling (拢53m) but this was partially offset by the impact of lower gains on fleet disposals (拢14m) as we reduced our replacement capital expenditure.
鈥淚 am pleased with the continued improvement in our margins - group EBITDA margin is now a record 49% (2015: 47%).聽 These healthy margins and our strong balance sheet provide flexibility to continue to invest in our long-term structural growth opportunity and enhance returns to shareholders.
鈥淲e continue to grow responsibly, adhering to the capital allocation priorities we have outlined.聽 We have therefore invested 拢683m by way of capital expenditure and a further 拢142m on bolt-on acquisitions.聽 With the continuing opportunity for profitable growth, we have increased our full year capital expenditure guidance.鈥�
Got a story? Email news@theconstructionindex.co.uk
