Strong second quarter boosts Ashtead Group's half year profit

Equipment rental company Ashtead Group has posted a positive start to the year, with first half revenue growth of 18% driven by a strong second quarter.

The FTSE 100 group posted its interim results for the six months to 31 October on Wednesday.

Underlying revenue for the quarter grew 17% at constant exchange rates from £477.9m to £589.0m, boosting first half revenues to £1.13bn.

That led to a first half pre-tax profit of £342.7m, up 21% on 2014’s £265.5m and will pay a 4p per share interim dividend.

The company also increased its capital invested in the business from £588m to £696m, and saw a 19% return on investment.

Chief executive Geoff Drabble said it has been a strong second quarter of growth.

"Even with significant levels of investment, we continue to grow responsibly, generating strong returns and maintaining leverage within our stated objectives,” he said.

“We continue to execute on our strategy to diversify the markets we serve, both in terms of geography and sector.”

Drabble said the company is anticipating a full year result ahead of previous expectations.