Equipment rental firm Ashtead has revealed a dip in profits and revenues on the back of weaker demand for used construction gear.
The FTSE 100 company said this was partly offset by higher rental revenues although this growth also slowed amid pressure on the US construction sector.
The update comes as Ashtead prepares to shift its primary stock market listing to New York from the start of the year, with plans to also change its name to Sunbelt.
On Tuesday, Ashtead told shareholders that group revenues dropped by 1% to 10.8 billion dollars (£7.96 billion) for the year to April 30, compared with the previous year.
It came after revenues dropped by 4% over the final quarter of the year despite an increase in rental sales.
It also reported that pre-tax profits slipped by 5% to 2 billion dollars (£1.47 billion) for the year.
Ashtead reported that its largest business division, North American general tools, grew by 1% over the year, as it received a boost of between 25 and 30 million dollars due to hurricane response works.
Brendan Horgan, chief executive of the group, said: “The group delivered record full-year rental revenue and adjusted earnings, with growth of 4% and 3% respectively.
“I’d like to thank the team for these results, while leading with our safety-first culture and engage for life programme, which are continuing to drive improvements in our safety metrics.”
Chris Beauchamp, chief market analyst at IG, said: “Ashtead has always been an interesting way for UK investors to get exposure to US economic growth, and it has certainly delivered impressive returns over the last decade.
“After nearly halving from last December’s highs the shares seem to have found their footing, and while a US recession remains the major risk to the growth story there is still a lot to like in this morning’s numbers.”
