U.K.-based equipment rental company Ashtead, parent company of Sunbelt Rentals, told Reuters it expected to deliver further growth next financial year after a record 12 months during which profit is expected to quadruple. Ashtead, which makes 80 percent of its revenue from Sunbelt, expects to continue to benefit from a trend that has contractors switching more to rent equipment rather than purchase it.
Ashtead chief executive Geoff Drabble told the news service that he considers the industry to still be at the bottom of the mountain rather than the top, with cyclical recovery to come. He pointed out that the housing market in the U.S. is beginning to show signs of recovery with construction employment beginning to stabilize. He added that the U.K. construction market was still weak, but that despite the poor conditions, Ashtead has been able to gain market share as smaller competitors struggle to secure financing.
Drabble added that he expects the company to grow its specialty businesses such as scaffolding for oil refineries and large back-up generators, enabling the group to diversify from construction. He said the division makes up about 20 percent of U.S. revenues, and that through investment and acquisitions of between $30 and $80 billion, it is aiming towards a 30-percent share of the company’s revenues in the next five years.
Drabble also said he expects the company to benefit in the short term from United Rentals’ acquisition of RSC Holdings. He said he expects Sunbelt to continue to open new branches in the U.S. and eventually expand into Canada, Mexico and Panama.
Based in Fort Mill, S.C., Sunbelt Rentals is No. 3 on the RER 100.
Advertisement
