Ashtead cashes in on sterling's collapse

Britain's biggest plant-hire group Ashtead enjoyed a Brexit boost today as it said profits for the year would beat expectations thanks mainly to the strength of the dollar against the weaker pound.

The firm, which makes almost 90% of its profits in the United States, said: “Both divisions are performing well, our end markets are strong and with the benefit of weaker sterling, we expect full-year results to be ahead of our expectations.”

First-quarter rental revenues to the end of July were up by 12% at £661 million and pre-tax profits up 4% at £184 million.

The business, which supplies power for the Super Bowl, said that the weakness of sterling had boosted these results by £17 million — although that was offset by making £12 million less on selling off older fleet as it decided to reduce capital spending on new machinery and plant.

Ashtead shares shot up 114p, or 9%, to 1372p which is an all-time high.