ASHTEAD GROUP PLC (Reuters) - Industrial equipment hire group Ashtead Group Plc (>> Ashtead Group plc) hiked its annual results forecast on Tuesday, as both its divisions performed at the upper end of expectations and a weaker pound boosted earnings.
The company, which hires out diggers and tools on short-term contracts, said also underlying pretax profit at constant currency rose 9 percent to 425.9 million pounds ($543 million) for the six months ended Oct. 31.
Underlying rental revenue at constant currency rose 13 percent to 1.44 billion pounds.
The company has benefited from the rebound in U.S. construction markets, particularly in the private sector, and has outperformed peers such as United Rentals Inc (>> United Rentals, Inc.) which have more exposure to the struggling oil and gas sector.
Ashtead's shares have gained 24 percent since the Nov. 8 on hopes that U.S. President-elect Donald Trump will make good on his plan to spend $1 trillion on roads and bridges.
Ashtead said on Tuesday it expected full-year result to be above its previous expectations. The company also increased its full-year capital expenditure guidance.
Analysts had expected pretax profit at constant currency of 760.85 million pounds on rental revenue of 3.013 billion pounds for the year ended April 30, according to Thomson Reuters I/B/E/S.
The company also revised its capital expenditure guidance for the full year to between 1 billion pounds and 1.2 billion pounds at current exchange rates.
Ashtead's stock was up 2 percent at 1572 pence at 0806 GMT, making it the second-biggest percentage gainer on London's bluechip index <.FTSE> U.S. peer United Rentals Inc (>> United Rentals, Inc.) in October had forecast adjusted core earnings towards the upper end of its previous guidance, even as it noted strong U.S. growth in the third quarter.
(Reporting by Esha Vaish and Noor Zainab Hussain in Bengaluru; Editing by Sunil Nair)
