Boom time has Ashtead lifting its targets

Booming demand for forklift trucks, concrete mixers and generators has left industrial equipment hire firm Ashtead predicting bumper full-year results.

Chief executive Geoff Drabble said today that the group had raised its internal expectations for 2013-14 after posting a first-quarter pre-tax profit of £97.4 million. The 66-year-old group had only made £34.6 million at the same stage in 2012, while revenue was up 24% to £410.5 million.

Listed in London since 1986, Ashtead achieved record results last year, with profit closing in on £250 million due to the pick-up in the US construction market.

That trend has continued into this financial year, leaving investors hopeful of more all-time highs — the share price, at nearly 690p, is about double the level of last September.

However, net debt continued to grow, and stands at almost £1.2 billion against £988 million last year, as Ashtead continues to invest in equipment to ensure it can fulfil orders.