(Reuters) – British equipment rental company Ashtead Group on Tuesday maintained its full-year profit forecast and reassured investors after reporting a drop in quarterly revenue, as well as appointing a new chief financial officer to replace Michael Pratt, who is retiring next year. be introduced
The company, which serves the construction, emergency response and entertainment markets in the UK, Canada and the US, saw adjusted pre-tax profit fall in its fiscal first quarter ended 31 July 7 due to higher depreciation charges and lower sales of used equipment. The percentage decreased.
However, the company expects annual results to be in line with its previous expectations.
“In North America, the increased proportion of megaprojects and the strength of our specialty businesses more than offset lower levels of activity in the local commercial construction markets,” it said in a statement.
Shares in Ashtead rose 3% to be among the top performers on London’s FTSE 100 index. Shares have nearly tripled since Pratt became CFO.
“Overall, we expect these results to be fairly well received today and the in-line messaging was reassuring after the negative earnings revisions seen last year,” JPMorgan analysts wrote in a note.
Ashtead has seen lower demand in the US, its biggest market, due to reduced emergency response activity as well as slower economic growth. In June, the company forecast a slowdown in U.S. rental income growth in fiscal 2025.
Pratt, 60, who became chief financial officer (CFO) in April 2018, will retire in September next year and Alex Pease has been appointed chief financial officer.
Pease, Westrock’s former finance director until its recent merger with packaging firm Smurfit Kappa, will join in October.
(Reporting by Prena Bedi, Radhika Anilkumar and Yadarisa Shabong in Bengaluru; Editing by Rashmi Aich and Mark Potter)