US hurricanes cleanup helps power Ashtead results

Ashtead said reported rental revenue increased 21% to £2.6bn for the nine months to the end of January and underlying pre-tax profit was up by 24% on a constant currency basis to £742m.

The equipment rental group said it expected capital expenditure for the year to be towards the upper end of guidance at around £1.2bn, adding that it expected full year results to be line with expectations.

The company's Sunbelt operation in the US contributed $75m-$85m in rental revenue thanks to its work in supporting the clean-up efforts after hurricanes Harvey, Irma and Maria.

US President Donald Trump's tax cuts also produced an exceptional tax credit of £414m, mainly a credit of £397m arising from the remeasurement of the group's US deferred tax liabilities.

“All our divisions continue to perform well in supportive end markets. While currency continues to be a headwind, we expect this to be mitigated by the strong underlying performance in North America,” said chief executive Geoff Drabble.