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Mon November 18 2024

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A-Plant feels margin squeeze

19 Jun 18 Plant and tool hire giant A-Plant has seen its operating profit margin eroded from 17.1% to 14.9% in the past year.

In the year ended 30th April 2018, A-Plant grew revenue by 13% to 拢471.7m (2017: 拢418.2m) but operating profit dipped a couple of points to 拢70.2m (2017: 拢71.6m). This was attributed to the integration of acquired businesses as well as pressure on hire rates.

Parent company Ashtead Group, which has substantial operations in North America with Sunbelt, posted pre-tax profit for the year of 拢862.1m (2017: 拢765.1m), a rise of 16%, on revenue up 20% to 拢3,706m (2017: 拢3,187m).

A-Plant鈥檚 acquisitions in the UK during the year included Plantfinder, an aerial work platform rental business,for 拢24m, and Chanton, a survey equipment business, for 拢1m.

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