The pretax profit of Ashtead Group, a London-listed equipment-rental group, has experienced a notable increase, primarily due to the robust North American markets, according to the company’s latest financial report.
In the first quarter of fiscal 2024, the company’s pretax profit reached $584.6 million, marking a significant rise from $526.8 million in the previous year. This growth can be attributed to the strong performance of the U.S. and Canadian markets, which achieved profit margins of 29.9% and 21.8% respectively.
Excluding exceptional and other one-off items, the underlying pretax profit for the quarter ended July 31 amounted to $614.9 million, compared to $554.7 million in the same period a year earlier.
Ashtead Group’s revenue also saw an increase, reaching $2.70 billion compared to $2.26 billion previously. The rental revenue was particularly impressive, rising by 14% to $2.38 billion.
The company is optimistic about its future prospects, stating that it has gained clear momentum in the North American markets. The U.S. market, in particular, has benefited from an increasing number of mega projects and recent legislative acts. Although market conditions in the UK are softening, Ashtead Group expects its overall performance to meet internal expectations.
“We are well-positioned with operational flexibility and financial capacity to seize the opportunities arising from these market conditions and ongoing structural changes,” expressed the company in its report.