Sunbelt Rentals’ Revenues, Profits Soar in Fiscal First Half
Sunbelt Rentals posted fiscal first-half total revenue of $1.107 billion, compared with $913.2 million in the same period in 2012, a 21.3-percent jump. EBITDA for the same period soared 30.3 percent, from $394.8 million a year ago to $514.8 million this year. Operating profit also leapt 35.6 percent, from $254.1 million in the first half of 2012 to $344.8 million for the fiscal first half of 2013.
A-Plant, the U.K. hire group also owned by parent company Ashtead plc fared quite well also, jumping 33.4 percent in revenue in the fiscal first half from £103.6 million a year ago to £138.2 million this year (about U.S. $226.4 million).
Sunbelt’s rental revenue grew 23 percent to $998 million, compared with $811 million a year ago, driven by a 17-percent increase in fleet on rent and 6 percent improvement in yield.
A-Plant, with the acquisition of Eve Trakway, posted rental revenue of £124 million (about U.S. $203.2 million), a 35-percent year-over-year jump.
Total group revenue increased 25 percent in the fiscal first half, from £680 million to £850 million.
“The momentum within the business continued through the second quarter, resulting in record half year pre-tax profits of £212 million, up 49 percent from the prior year,” said Ashtead chief executive Geoff Drabble. “Once again, Sunbelt in the U.S. is the main driver of our growth but it was pleasing to see another strong performance from A-Plant.
“Our strategy continues to be focused largely on organic growth, supplemented by a range of bolt-on acquisitions. We invested a net £401 million in our fleet during the first half and a further £61 million on acquisitions. However, at the same time, our strong margins allowed us to reduce leverage to 2.1 times EBITDA. Activity on the ground and lead indicators remain very healthy and, as a result, we have increased our full-year capital guidance to £700 million to support our customers during an anticipated strong spring of 2014.”
Based in Fort Mill, S.C., Sunbelt Rentals is No. 2 on the RER 100. Ashtead plc is headquartered in London.
