Results round-up

As growth at Ashtead Group's UK and US divisions has been at the faster end of its expectations, with a further boost from the pound's collapse, the plant hire group said it now expects full year results will exceed its original targets.

Including the effects of the weak pound, group rental revenue in the six months to 31 October grew 28% to £1.45bn, or 13% at the underlying level if the £53m currency benefit is ignored.

With group margins improving, underlying pre-tax profits rose 9% to £425.9m and earnings per share at the same rate to 56p.

The interim dividend was hoisted 19% to 4.75p per share.

"With the continuing opportunity for profitable growth, we have increased our full year capital expenditure guidance," said chief executive Geoff Drabble, with the figure narrowed to £1-1.2bn at current exchange rates.

He said both divisions "continue to perform at the upper end of expectations" in the second half.

Revenue growth was perfectly balanced, with same-store growth of 7% and bolt-ons and greenfield site openings contributing another 7% growth.

As expected, debt was increased by fleet investments and bolt-on acquisitions, with weaker sterling also contributing to reported debt increasing by £377m to £2.66bn with the ratio of net debt to EBITDA reduced to 1.8 times from 1.9 times on a constant currency basis, within the target range.

Wolseley, a distributor of plumbing and heating products, reported a rise in first quarter revenue, including increased revenue from the US, but said the UK remained weak and the Nordics had deteriorated.

During the quarter ended 31 October, the company generated revenue of £4.36bn, 5.2% ahead of last year at constant exchange rates and 1.8% higher on a like-for-like basis, including a 1.3% commodity price deflation.

Trading profit rose 1.4% to £303m at constant exchange rates, this included an extra day of trading which generated £6m of additional trading profit.

Exchange rate movements increased revenue by £599m and trading profit by £48m.

In the US, the company’s plumbing and heating business, Ferguson, grew 4.2% on a LFL basis, this was partly offset by the ongoing impact of commodity price deflation which reduced US revenue growth by 2.4%.

LFL revenue was down 2.9% in the UK as the repairs, maintenance and improvements markets remained “weak”. But despite this the gross margin increased and the £17m of trading profit was just £2m behind last year.

For the Nordic region LFL revenue fell 2.9% due to deterioration in the construction markets and the gross margin was weaker with trading profits, at contrast exchange rates, behind by £5m. The company said it has launched a review of the region's operating strategy.

LFL revenue in Canada and central Europe was also down 2.7%.

While the US provided some encouragement, chief executive John Martin said: “Our other markets were more challenging as the UK heating market was weak and Nordic construction markets deteriorated. While revenue growth trends have improved slightly we continue to manage costs and productivity very carefully while continuing to drive customer service and strong cash conversion."