Ashtead Group Plc

Analysis

Business Description

Ashtead Group plc (Ashtead) is a provider of rental equipment. The company offers machine tools and host of other equipment for diverse applications. It has operations in the US, the UK and Canada. In FY2020, it reported GBP1,483 million of capital expenditure, which stood at 29.3% of its revenue.

The company operates through three business segments: Sunbelt US, Sunbelt UK and Sunbelt Canada.

As of April 2020, the company had 1,105 rental stores, 815,000 rental assets and 745,000 customers.

Business Segments
Performance

- Reported revenue of GBP4,606.5 million for FY2020, which grew 11.3% YoY, and reported a CAGR of 16.1% during 2018-20.

- Accounted for 91.2% of the company's revenue in FY2020.

Inventore veritatis
Performance

- Reported revenue of GBP184.0 million for FY2020, which grew 7.9% YoY, and reported a CAGR of 15.0% during 2018-20.

- Accounted for 3.6% of the company's revenue in FY2020.

Performance

- Reported revenue of GBP263.1 million for FY2020, which grew 37.7% YoY, and reported a CAGR of 33.1% during 2018-20.

- Accounted for 5.2% of the company's revenue in FY2020.

Overview

- Offers equipment rental services in Canada.

Key Stats

- As of April 2020, had 75 stores and fleet size worth CAD921 million.

Performance

- Reported revenue of GBP248.7 million for FY2020, which grew 24.2% YoY, and reported a CAGR of 38% during 2018-20.

- Accounted for 4.9% of the company's revenue in FY2020.

- Reported operating profit of GBP32.2 million in FY2020, which grew 0.9% YoY.

- Growth in revenue was the result of a 30% increase in revenue from rental activities.

Overview

- Offers equipment rental services to industrial and construction customers in the UK.

- Provides a wide range of equipment for plant, tools and equipment from dumpers, accommodation units, excavators, and traffic control management.

- Offers power access tools, lifting and material handling, large plant equipment, power solutions and lighting, and water pumps and pipework equipment for the industrial, building, and Do-it-Yourself segments.

- Also offers generators, rail equipment, traffic systems, accommodation units, welding equipment, specialist pumps, and formwork and falsework products.

Key Stats

- As of April 2020, had 193 stores and a fleet size worth EUR874 million.

Performance

- Reported revenue of GBP469.2 million for FY2020, which decreased 1.2% YoY, and reported a negative CAGR of 0.3% during 2018-20.

- Accounted for 9.3% of the company's revenue in FY2020.

- Reported operating profit of GBP36.4 million in FY2020, which decreased by 41.6% YoY.

- Decline in revenue was the result of a 2% decline in revenue from fleet on rent business.

Overview

- Provides construction and industrial equipment for rental. Its fleet comprises general plant, forklifts, tools, earthmoving, aerial work platforms, telehandlers, pump and power, and scaffolding.

- Serves the country’s non-residential construction market.

- Has its profit centers in metropolitan locations such as Baltimore, Washington DC, Tampa, Miami, Orlando, Seattle, and Los Angeles.

- Provides its customers a comprehensive, one-stop service for all their rental requirements.

- Operates through its subsidiary Sunbelt Rentals Inc.

Key Stats

- In FY2020, added 85 new stores and had 837 stores and fleet size worth US$10,102 million as of April 2020.

Performance

- Reported revenue of GBP4,335.7 million for FY2020, which grew 13.4% YoY, and reported a CAGR of 18.2% during 2018-20.

- Accounted for 85.8% of the company's revenue in FY2020.

- Reported operating profit of GBP1,232.1 million in FY2020, which grew 4s% YoY.

- Growth in revenue was the result of 10% increase in revenue from fleet and rent activities; and 10% increase in revenue from the sales of new and used equipment, merchandise and consumable.