Tool renter Ashtead buoyant after £1.1bn profit touchdown

Super Bowl supplier Ashtead on Tuesday promised to carry on growing profits despite an investor “obsession” over a slump in US construction markets.

The UK tools supplier, which rented out power generators used in the NFL Super Bowl stadium in Atlanta in February, saw profits break £1 billion for the first time today, rising 17% to £1.1 billion.

Chief executive Brendan Horgan said Ashtead, which makes most of its profits in the US through subsidiary Sunbelt, can maintain growth despite fears that a slowdown in US construction is on the cards.

“The investment community for too long has been obsessed with trying to pick the cycle as it relates to Ashtead,” said Horgan. “They are spending time on when there may be a downturn rather than to what extent there may be a downturn.”

Data firm Dodge say US construction will grow 2% this year to £1.3 billion but should contract 1% in 2020 and 2% in 2021.

“There is every likelihood that if the forecast happens to be right we will grow through the cycle” he added, saying the market would still be large overall.