A-Plant’s rental revenue for the nine-month period grew 11% to £125m. Total revenue was up 14% to £138.3m and operating profit was up 74% to £5.4m.
However, return on investment remains weak at 2.1% (2011: 1.5%).
For the winter months of November to January, A-Plant revenues were up 15% to £44.6m, thanks to in part to milder weather, but operating profit before amortisation was just £0.1m, though this was better that the £1.1m operating loss for the same quarter of the previous year.
A-Plant’s numbers were included in the third quarter results of parent company Ashtead Group, whose US rental company, Sunbelt, is enjoying a stellar return to health after a tough recession.
For the nine months to 31 January 2012, Sunbelt saw operating profits rise 73% to £143.5m on revenues up 21% to £708.5m. Thanks to Sunbelt’s 37% EBITDA margin, group nine month EBITDA margin was 35%, up from 31% for the same period the previous year.
Ashtead’s group third quarter pre-tax profit reached £21m, compared to a £2m loss for the third quarter of the previous year, on revenues up 21% to £271.3m.
Ashtead chief executive Geoff Drabble said that full year profit would now be strongly ahead of previous expectations. He said: "Once again, we are pleased to report a strong set of results. Our record third quarter pre-tax profit of £21m (2011: £2m loss), whilst undoubtedly being helped by favourable weather conditions, is predominantly due to the continuation of the momentum we have established over recent quarters.
“We continue to invest strongly in organic growth, with our rental fleet now being 11% larger and an average of five months younger than a year ago. However, with a continued focus on margin improvement, this investment has been accompanied by a reduction in net debt to EBITDA leverage to 2.5 times (2011: 2.8 times).
“The board remains committed to a strategy of strong organic growth and continues to believe that we are well positioned to take advantage of a continuation of current market trends. We therefore now anticipate a full year profit significantly ahead of our earlier expectations."
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