Share prices for construction equipment provider Ashtead are up, revealing the resiliency of the housing market…
Increased share prices at Ashtead Group, a major construction equipment provider, reflect the resilience of the housing market, according to experts. Prices were up in morning trading following an announcement from the firm of a strong set of results.
According to the data, Ashtead Group saw its rental revenue for the year grow 17 per cent. Additionally, the firm revealed a pre-tax profit of £645m. This was a 24 per cent increase on £489m seen in 2015.
The company also saw £1.2bn of capital invested in the business this year, with a share buy-back of up to £200m in the year 2016/17. Dividends for the full year expect to increase by 48 per cent from 15.25p last year to 22.5p.
The news will undoubtedly be welcomed by the firm, but also by the wider sector, which has been blighted by concerns over what the upcoming EU referendum could mean for UK construction. Ashtead is not the only firm to see good results either, with housebuilder Crest Nicholson also posting strong outcomes.
Ashtead Group’s chief executive Geoff Drabble said: “We continue to deliver on our well-established strategy of organic growth, supplemented by bolt-on acquisitions.
“We have broadened both our geographic footprint and the markets we serve and the benefits of this diversification are evident, both in our financial performance and our market share gains.”
