Ashtead hit by slump

CONSTRUCTION plant hire group Ashtead yesterday reported a 22 per cent fall in full year profits, but said it has no plans for a fresh equity raising and remains confident despite a tough year ahead for the construction industry.

Ashtead, which rents industrial equipment and tools in Britain and the US, said pre-tax profit from continuing operations before exceptional costs was £87m in the year ended 30 April, compared with £112m last year, while revenue was up two per cent at £1.074bn.

A particularly bad fourth quarter performance took its toll, with the group posting a pre-tax loss of £200,000 for the three months to the end of April compared to a profit of £22m last year.

The firm warned that a sharp drop in sales would carry over to next year due to a lack of private commercial building projects, which account for half its business.

Ashtead chief executive Geoff Drabble said: “We would forecast 2009-10 will be difficult. That will impact adversely on margins, as seen in our fourth quarter.”

The group yesterday saw its stock rise by 6.1 per cent to 56.5p.