Sunbelt Rentals Jumps Revenues 23.5 Percent in Fiscal First Half
Sunbelt Rentals, North America’s second largest equipment rental company, posted $1,367.9 million in revenue for the fiscal first half of 2014, compared to $1,107.5 million for the same period a year ago, a 23.5-percent jump. EBITDA growth was even better, leaping from $514.8 million a year ago to $666.5 million this year, a 29.5 percent hike.
Sunbelt posted $1,247 million in first half rental revenue, a 25-percent increase. The company said Sunbelt Rentals added 105 locations in the United States over the past 18 months, and that same-store revenue for the first six months of the fiscal year increased 17 percent.
United Kingdom-based parent company Ashtead, including U.K. rental company A-Plant, recorded £987.3 million (about U.S. $1,551.6 million) compared to £849.7 million a year ago, a 16.2 percent increase.
“The Group delivered another strong quarter with record underlying pre-tax profits of £266 million, up 33 percent on the prior year,” said Geoff Drabble, Ashtead chief executive. “It was particularly pleasing to see a strong contribution from both Sunbelt and A-Plant. We continue to execute on our strategy, focused on organic growth supplemented by bolt-on acquisitions. We invested £588 million in capital expenditure and a further £107 million on bolt-on acquisitions in the period. Given the profitable growth opportunities evident in our markets, we are increasing our full year guidance for capital expenditures to a range of £925 million to £975 million.”
Drabble continued to be cautiously optimistic when analyzing future prospects for both Sunbelt Rentals and A-Plant.
“Even with these significant levels of investment, we continue to grow responsibly, generating strong returns and maintaining leverage within our stated objectives,” he added. “With both divisions performing well, recovering end markets, and a proven track record of market share gains, we now anticipate a full year result ahead of our previous expectations.”
Sunbelt Rentals, No. 2 on the RER 100, is based in Fort Mill, S.C. Ashtead plc is headquartered in London.
