Ashtead Group PLC Investor event and update on current trading (8507V)
21 April 2016 - 4:00PM
UK Regulatory
TIDMAHT
RNS Number : 8507V
Ashtead Group PLC
21 April 2016
Ashtead Group plc
21 April 2016
Investor event and update on current trading
Ashtead Group plc is holding a short seminar for analysts and
investors in London this afternoon.
The seminar will introduce some additional information and
disclosure that the Group is planning to provide with the year end
results which will be announced on 14 June. The seminar will
include the following update on current trading:
The Group has continued to perform well in the fourth quarter of
the current financial year and we expect full year results to be
towards the top of the range of current analyst expectations.
Today's seminar will include a discussion of the relative
performance of and trends within its General Tool and Specialty
businesses. The Group's Specialty businesses provide an opportunity
for long term structural growth and more consistent returns on a
typically less cyclical basis, with a lower capital
requirement.
For some time the Group's growth objective has been to achieve
15% market share in the US, almost double the current position.
Sunbelt's market share in recent years has increased through a
combination of same-store growth, greenfield store openings and
bolt-on acquisitions and this plan will continue over the medium
term. Today almost one third of our stores have been open for under
three years and this has unsurprisingly impacted some of the
metrics of the business. The maturing of these stores will enhance
future overall margin improvement and further detail will be
provided today.
Finally the seminar will highlight Sunbelt's business with
managed accounts. Our strategy remains unchanged, focused on a wide
range of products and customers, with small to mid-sized
contractors at its core. Since 2011 we have taken significant
market share in the small to mid-sized contractor market however we
have also benefitted from a unique opportunity to grow our larger
managed accounts. The overall impact on profitability and returns
of these changes is positive but it does affect individual metrics
which will again be covered in today's presentation.
Geoff Drabble, Chief Executive of Ashtead, commented: "As the
Group has grown it has become larger and more diversified, and this
will deliver higher returns and greater stability across the cycle.
It does however lead to varying metrics relative to historical
performance. It is important that these trends are better
understood and to assist we have now added further granularity to
our presentations."
Brendan Horgan, CEO of Sunbelt, and Sat Dhaiwal, CEO of A-Plant,
will be present at the event today to answer questions.
The presentation slides will be available from 4pm this
afternoon on the Group's website at www.ashtead-group.com under
"Results and presentations" in the Investor Centre.
Further enquiries:
Ashtead Group +44 (0)20 7726
Will Shaw plc 9700
Becky Mitchell / +44 (0)20 7379
Tom Eckersley Maitland 5151
This information is provided by RNS
The company news service from the London Stock Exchange
END
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