Sunbelt Rentals EBITDA Leaps 37 Percent for Fiscal Year

June 20, 2013

Sunbelt Rentals posted $1,819.9 million ($1.82 billion) in revenue in its fiscal year ended April 30 according to results reported by parent company Ashtead plc, a 20.8-percent increase compared to $1,506.6 million a year ago. Ashtead’s U.K. rental company A-Plant posted £206.1 (about U.S. $319 million), compared to £188.9 million in the previous year, a 9.1-percent increase.

EBITDA for Sunbelt Rentals was $741.4 million, compared with $540.8 million a year ago, a 37.1-percent jump. EBITDA for A-Plant increased 16.3 percent year over year, from £49.5 million a year ago to £57.6 million in the recently concluded year.

For the total company, revenue was £1,361.9 million (about U.S. $2.1 billion), compared to £1,134.6 million a year ago, a 20 percent hike, while EBITDA jumped 36.2 percent from £381.1 to £519.3.

“We are delighted to report another excellent set of results with key financial and non-financial metrics at record levels,” said Ashtead chief executive Geoff Drabble. “Our largely organic investment strategy has again delivered strong revenue growth together with margin and return on investment improvement. We continue to make significant investment in the business with capital expenditure of £580 million in the year and a similar level planned for the coming year. As a result of our strong margins, we are able to support this investment while at the same time continuing to deliver.

“With this momentum established in the business, cyclical recovery still to come and a strong balance sheet to support growth opportunities, we anticipate that our profits in the coming year will be ahead of our earlier expectations.”

Sunbelt posted a 40.7-percent EBITDA margin, compared to 35.9 percent a year ago, while A­Plant’s EBITDA margin rose from 26.2 percent to 28 percent.

In the fourth quarter, Sunbelt’s rental revenue increased 23 percent as a result of having 18 percent more fleet on rent and a 6-percent year-over-year improvement in yield. A-Plant also posted strong revenue growth of 11 percent with increased fleet on rent.

For the full year, Sunbelt’s rental revenue jumped 21 percent to $1.61 billion, compared to $1.335 billion a year ago, driven by a 13-percent increase in average fleet on rent and 7 percent improvement in yield.

Capital expenditure for the year was £580 million (about U.S. $898 million) of which £521 million was rental fleet and the balance delivery vehicles, property improvements and IT. At April 2013, the group’s rental fleet at cost was £2.2 billion with a reduced fleet age of 32 months, compared to 37 months a year ago. Sunbelt’s fleet size on April 30 was £2.9 billion.

The company said its preliminary capital expenditure plan for next year is for gross additions of about £560 million, a similar level, but with a greater proportion to be directed to growth rather than replacement, keeping fleet age broadly stable.

Sunbelt Rentals, No. 2 on the RER 100, is headquartered in Fort Mill, S.C. Asthead plc is based in London.