Ashtead returned to growth as successful vaccination campaigns helped the equipment rental company, reports Ben gartside.
Income jumped 23% in the three months ending in late April, as the economy began to warm up in the wake of the coronavirus pandemic.
Contracts with the Department of Health and Welfare have proven to be profitable, as the department accounted for 29% of the group’s turnover in the UK last year.
Ashtead, which is the UK’s largest supplier of traffic cones, has seen test centers lead the demand for mobile generators and portable light towers.
The company said it expects sales to increase by 6-9% globally due to post-vaccine reopenings.
Managing Director Brendan Horgan praised the results, saying they prove Ashtead’s resilience.
Mr. Horgan said, “We have shown that our business can work just as well in the good times as in the toughest times. We are entering the new financial year with a clear dynamic and a strong position in all of our markets ”.
Ashtead recently launched a new Canadian subsidiary, which the company expects to grow by a quarter next year.
Over the past decade, the company’s share price has risen from £ 1 to over £ 51, thanks to growth in the US.
The equipment rental company initially focused on the UK, but now has over 90% of its operations in the US and Canada. Following its growth across the Atlantic, the company said future results would be measured in dollars rather than pounds.