Ashtead has been a very good recovery stock.One to watch leading up to results 13th December and beyond.

Positives....

1. AHT have made a number of aquisitions.
2. Won their court case against H&E & been awarded $US20.1M......guaranteed.
3. Been up-graded by Moodys to a Ba3 rating on its recent re-financing.
4. Successfully re-financed at a far cheaper rate with better terms & conditions attached.
5. Won a number of significant contracts in the UK.
6. A number of AHTs US peers have produced significantly positive figures.
7. UBS buy rec at 200p.
8. PMUR buy rec upped from 170p to 200p.
9. Hurricanes have hit US, creating work.
10. "positive impact of stronger US$ compared to this time last year".

Watch and wait for breakout above 165p.

Short term target prices between 175p-200p.Would expect furthing re-rating post results.Breakout hold & close above 165p.

Perking up as near open in US.164.75p-165p

What a chart.Today the promised breakout above 165p.sp held onto gains which bodes well.Looking for next target 175p.Results Dec 13th.

AHT

Ashtead Group PLC
Daily Commentary


Our system posted a BUY-IF today. The previous BUY recommendation that was confirmed was made on 15.11.2005 (15) days ago, when the stock price was 153.5000. Since then AHT has gained 10.10% .

Are you eager to sell your shares? Well we say: Stick to them for the moment! Market mood is again bullish. Our SELL-IF alert is not confirmed. It is now null and void and should be ignored. Besides, we have a bullish pattern, now. This may be a call for another buying opportunity. Again it is time to be on your toes. First, be aware of what happened at after hours trading and futures. Then, follow the next session very carefully. This candlestick pattern is a bullish one, but we have to see whether it will be confirmed or not.

Do you see a gap-up at the market open? Do you see a white candlestick forming with a higher close at the session's end? Shortly, is it a nice bullish day? If so, increase your holdings or open new long positions.

Well, things do not go as expected sometimes. You may rather see a gap-down at the open or a black candlestick forming with a lower close in the next session. If this is the case, humbly accept the market verdict, cancel the buy orders and cover any long positions that you might have opened.

[MOTTO OF THE DAY]
When the bulls are still strong
Buying more will not be wrong

BUY-IF

169.00
+6.0000 +3.68%

Candlestick Analysis
Todays Candlestick Patterns:

White Opening Marubozu
Bullish Separating Lines

Today a White Opening Marubozu was formed. This shows that the day opened and then the prices continued to go up all day long without coming below the opening level thus forming a long white body, however prices did not close at the high of the day and thus they created an upper shadow.

For more about this candlestick click here.

The last two candlesticks formed a Bullish Separating Lines Pattern . This is a bullish continuation pattern that confirms the current uptrend. However, its reliability is low and it definitely requires confirmation.

For more about this pattern click here.

For those that do not know 80% of Ashteads business is done in the US.Companies is same sector doing very well.Speedy Hire reported recently business up.

Possibility of resuming dividend payments which would please institutional investors.

Closed 168.75p-169p.There was a lot of buying today at 170p & 171p all of which bodes well for tomorrow.If nothing else place AHT on your monitors.Expecting brokers target price 200p to be met and more.

Good morning everyone.How long sp below 170p?

edit:
lex1000 - 1 Dec'05 - 10:38 - 54250 of 54251 edit


Lost a bit of momentum and chance to buy between 167.5p-170p.Off out will look in later pm after US opens. ps time to be holding and not selling this close to results and break above 170p.

fingers xxd - 1 Dec'05 - 10:49 - 54251 of 54251


Just 'popped in' for a quick look ..

Yesterday afternoons 'uptrend' has failed, and the price is moving towards the 'lower uptrend' put in place yesterday morning, which should start lifting the price around midday.

168.5p-169p.Still time to buy for under 170p . Merry Christmas.

High volumes.169.5p-169.75p.Breakout maybe soon!?
edit:tick down

sp decided to go in for a bit of triangularization.Direction will be decided on monday.Results expected to be excellent.

Fantastic set of results

ASHTEAD GROUP PLC

RECORD FIRST HALF PROFITS & DIVIDEND PAYMENTS RESUMED

Unaudited results for the half year and second quarter ended 31 October 2005

Ashtead Group plc, the equipment rental group serving the US and UK
construction, industrial and homeowner markets, announces its results for the
half year and second quarter ended 31 October 2005.

Highlights

* Group Q2 profit before exceptional items & tax increases from 13.4m to
27.9m

* Group H1 profit before exceptional items & tax increases from 18.3m to
40.2m

* After exceptional items of 1.9m, the H1 profit before tax is 38.3m (2004
- 18.3m)

* Sunbelt's H1 operating profit before exceptional items rises 53.7% to
$96.4m (2004 - $62.7m)

* A-Plant's H1 operating profit is up 3.5% to 8.9m (2004 - 8.6m)

* Market conditions in the United States expected to remain favourable

* Payment of dividends resumed - interim dividend of 0.5p per share declared

Ashtead's chief executive, George Burnett, commented:

'Sunbelt achieved substantial first half profit growth by maintaining last
year's record levels of utilisation on a fleet which was on average 7% larger
than a year ago and by continuing to grow its market share. Although A-Plant's
profit growth was more modest, it did achieve improved return on capital year
on year through rigorous cost control. Ashtead Technology took advantage of the
strong offshore market to record a 67% profit increase.

I am pleased that the strength of the Group's first half performance, our
confidence in the outlook and the completion of the capital reorganisation has
enabled the Board to announce the resumption of dividend payments to
shareholders for the first time since 2002.

With interim profits more than double those of last year, continuing strong
trading conditions at Sunbelt and Ashtead Technology and a stable position at
A-Plant, the Board looks forward with confidence.'

Contacts:

Cob Stenham Non-executive chairman 020 7299 5562
George Burnett Chief executive )
Ian Robson Finance director ) 01372 362300

Brian Hudspith The Maitland Consultancy 020 7379 5151


PRESS RELEASE

Overview

The Group achieved a record first half performance with revenue up 14.2% to
313.8m and a first half profit before tax and exceptional items of 40.2m, more
than double last year's 18.3m. After net exceptional items of 1.9m, the first
half pre-tax profit was 38.3m. Exchange rates were similar in both periods and
consequently currency translation changes did not have a significant effect on
reported performance.

Basic earnings per share were 6.9p before and 6.5p after exceptional items
compared to 2.8p a year ago. On a cash tax basis, earnings per share before
exceptional items were 10.6p (2004 - 5.5p). An interim dividend of 0.5p per
share will be paid on 28 February 2006.

The Group now reports its results under international financial reporting
standards (IFRS) and comparatives have been restated accordingly. Full details
of the migration to IFRS are included in the separate statement published on 20
September 2005 and available on the Company's website at
www.ashtead-group.com
.

Review of first half trading performance

Revenue EBITDA* Profit*
------- ------- -------
2005 2004 2005 2004 2005 2004
----- ----- ----- ----- ----- -----

Sunbelt in $m 406.8 342.0 159.8 120.2 96.4 62.7
----- ----- ----- ----- ----- -----
Sunbelt in m 226.1 188.1 88.9 66.1 53.6 34.5
A-Plant 79.7 80.6 26.9 27.4 8.9 8.6
Ashtead Technology 8.0 6.0 4.1 2.9 2.3 1.4
Group central costs - - (3.5) (3.3) (3.5) (3.3)
----- ----- ----- ----- ----- -----
313.8 274.7 116.4 93.1 61.3 41.2
----- ----- ----- -----
Interest (21.1) (22.9)
----- -----
Profit before tax 40.2 18.3
----- -----
* in 2005 before exceptional items

As a result of Sunbelt's performance in particular and reflecting the Group's
operational gearing, the 14.2% revenue increase resulted in a 25.0% increase in
EBITDA before exceptional items to 116.4m and an increase of 48.8% in
operating profit before exceptional items to 61.3m. These improvements were
reflected in the Group's margins. EBITDA margins grew from 33.9% to 37.1% and
operating margins rose from 15.0% to 19.5%.

Sunbelt

In the six months to 31 October 2005 revenue grew 18.9% to $406.8m. This was
achieved through increased investment in the rental fleet which was 7% larger
than a year ago and by significant increases in rental rates which grew
approximately 10%. Average utilisation remained at last year's record level of
72% despite the increased investment. Revenue growth was broadly based with all
regions and all major product areas trading ahead of last year. In a strong
trading environment where US non-residential construction rose 7.4% in the 12
months to end October according to figures published by the US Department of
Commerce, Sunbelt continued to take market share. Sunbelt's operating profit
before exceptional items was up 53.7% to $96.4m, representing a margin of 23.7%
(2004 - 18.3%).

In the second quarter Sunbelt was actively involved in the clean-up efforts on
the US Gulf Coast and in Florida following hurricanes Katrina, Rita and Wilma.
No Sunbelt store suffered significant damage from the hurricanes and none of
its staff was hurt. Sunbelt also incurred no significant costs for lost or
damaged rental equipment. Although we now expect that the impact of the
clean-up and reconstruction work on the current financial year will be more
significant than the impact we have seen from storms and natural disasters in
earlier years, hurricane related revenues are still anticipated to account for
only around 2% of Sunbelt's full year revenues.

Sunbelt invested $151.8m in the first half to maintain the quality of its
rental fleet and reduce its age as well as for growth. This included the
opening of three new greenfield stores. A further fifteen new general equipment
rental stores have been acquired in the first half for a consideration of
approximately $100m. In August Sunbelt also disposed of 12 west coast
specialist scaffold locations for approximately $24m generating an estimated
disposal profit of $5.4m (3.0m) which is included in exceptional items. The
new stores continue Sunbelt's strategy of clustering major metropolitan
markets. Additional infill acquisition opportunities are under consideration
but Sunbelt also continues to emphasise organic growth. 17.3% of the total
first half revenue growth of 18.9% was delivered by stores open throughout both
periods.

A-Plant

In a continued competitive market, A-Plant's first half revenue of 79.7m
compares to 80.6m last year but was achieved from a fleet which on average was
approximately 2% smaller than last year. This reflected the year on year effect
of last year's downsizing of the business which has now been concluded. The
growth in rental rates was approximately 3% whilst average utilisation
decreased from 66% to 65%.

Careful management of operating expenses continued and these declined 0.8% year
over year reflecting principally the full year impact of measures taken last
year. A-Plant's first half operating profit grew 3.5% to 8.9m (2004 - 8.6m),
representing a margin of 11.2% (2004 - 10.7%).

During the first half a major restructuring of A-Plant's sales operations was
introduced with a view to serving, in a more focussed way, the differing
requirements of national, regional and local customers. Senior sales management
resources have been increased as has the size of the sales force with the cost
of this investment being largely funded by administrative savings elsewhere. In
November, A-Plant returned to delivering year on year revenue growth.

Ashtead Technology

Ashtead Technology's performance continued the trend established in the second
half of last year with revenues up 33.3% to 8.0m (2004 - 6.0m). This reflects
increased investment by the oil majors which is delivering higher offshore
exploration and construction activity as well as continued growth in
Technology's on-shore environmental business. These trends are expected to
continue. As a result Technology's first half operating profit grew 66.9% to
2.3m (2004 - 1.4m).

Exceptional items

In addition to the trading results discussed above, operating profit as
reported in the consolidated income statement below includes 2.9m of
exceptional items. These comprise a 3.0m estimated profit on disposal of
Sunbelt's 12 scaffold stores on the US west coast and in Texas less 0.1m of
post acquisition integration costs. Additionally the 4.8m net cost of last
summer's capital reorganisation, mainly relating to the 12% premium payable on
the 42m of sterling senior secured notes redeemed early out of the proceeds of
the equity placing, is included as an exceptional item within finance costs.

Taxation

Overall for the first half, following the capital reorganisation and related
internal restructuring of our US financial structure, the effective accounting
tax rate on the profit before exceptional items has fallen to a more normal 38%
compared to the very high effective accounting tax rates seen in recent years.
The cash tax rate remains low at 5%. Although the Group's cash tax rate is
likely to remain well below the accounting rate, the rapid increase in
Sunbelt's profitability together with the $20.1m receipt discussed below from
the Head & Engquist litigation now make it probable that the cash tax rate will
rise into double digits in 2006/7.

Capital expenditure and net debt

Capital expenditure in the six months was 131.3m of which 120.0m was invested
in the rental fleet (2004 - 69.1m in total) with the increased expenditure
directed towards expanding Sunbelt's rate of growth. 53.8m of the fleet
expenditure was for growth with the remainder spent to replace existing
equipment. Disposal proceeds were 24.5m (2004 - 15.5m) generating a profit on
disposal of 4.2m (2004 - 2.5m).

Reflecting current strong market conditions, we now expect that gross capital
expenditure for the year as a whole will be approximately 220m, an increase of
40m over our previous guidance. After anticipated disposal proceeds of
approximately 55m (including those earned from the scaffold sale which have
been reinvested in general equipment), net capital expenditure is anticipated
to be approximately 165m. Approximately 100m of the 220m gross expenditure
will be for growth.

Net debt at 31 October 2005 was 515.6m, an increase of 33.3m since 30 April
2005 but still a reduction of 3.4m since 31 October 2004. At constant exchange
rates the increase since year end was 19.6m with debt lowered by 12.4m in the
past year. Availability under the asset based loan facility was $271m at 31
October 2005 ($157m at 30 April 2005).

Amended asset based loan facility

On 14 November 2005, amended terms were agreed with the syndicate of lenders
who make available the Group's first priority asset based senior secured loan
facility to, inter alia, increase the amount, extend the maturity and reduce
the cost of the facility. The amended facility provides us with substantial
flexibility for continued investment in the Group's development.

Following the amendment the weighted average financing cost of our borrowings
(including amortisation of deferred debt raising costs) is currently
approximately 8% and their weighted average maturity is approximately 6.5
years.

Head & Engquist Equipment LLC (H&E) litigation

As announced on 24 November, Sunbelt and H&E have settled their litigation with
H&E paying to Sunbelt the sum of $20.1m (11.7m). The proceeds of the
settlement were applied to reduce borrowings under the Group's asset based
revolver and will be recognised as an exceptional profit in the third quarter.

Dividends

In light of the strong trading performance in the first half, its confidence in
the outlook and following the successful capital reorganisation, the Board is
pleased to be able to announce today the resumption of dividend payments.
Accordingly an interim dividend of 0.5p per share will be paid on 28 February
2006 to shareholders on the register on 17 February 2006.

Current trading and outlook

With interim profits more than double those of last year, continuing strong
trading conditions at Sunbelt and Ashtead Technology and a stable position at
A-Plant, the Board looks forward with confidence.

- o0o -

There will be a presentation to equity analysts at 9.30am today at the offices
of JPMorgan at 10 Aldermanbury, London, EC2V 7RF and a conference call for
bondholders in the afternoon at 3.00pm. A simultaneous webcast of the equity
analysts presentation will be available via the Company's website at

www.ashtead-group.com
and there will also be a recorded playback available from
shortly after the call finishes.

Excellent results,dividend and chart breakout.

Up over 15p.Really surprised little interest shown here.Sliced through target 175p and next target 200p.

I'll keep you company lex! I bought at 169p a week ago - mostly using comments etc on moneyAM and the chatroom - so I'm very happy!
Thanking you - and I'm in till 200p is reached.

Pleased to see others making money here.IF AHT conitnues recovery journey to conclusion then 240p-300p is more than possible.Believe fell from 300p+ down to 2.5p.Can you imagine feeling originally buying 2.5p-10p and price seen today!Oils & gas another good sector to be in.Personally following TLW by coincidence chosen to breakout today.

Hi LEX

i bought aht @9
sadly sold at 75

have been itching to get back in and was tempted yesterday,wish i had now

good luck

AHT looking good for eventual moves to 200p.Consider TLW as very bullish.

Anyone still interested in these? Hitting new highs, broker upgrades and not a peep on this thread for four months.

Pond Life,yes this is my biggest holding at the moment,and it aint showing signs of slowing down . :-)))

This is becoming a regular little moneymaking machine. It isn't quite my largest holding - but it soon will be :-)

Pond - there's a very active BB on advfn with hatto to the fore. The posters seem to be there all day and every day. It will be difficult to rival it with this, with all due respect!

I'm happy - in since 169p.

Well AHT rose 150p to highs of 240p.Overbought.Retraced been trading 185p-205p with resistance to break @ 200p.

Results rumoured to be 27 June 2006.

Bought into these at 1.35 just before the rights issue. Took up my 7500 new shares. Looked a bit sticky for quite a few weeks but now its over that all imprtant 1.50 level I think these are going to move steadily back to 2+ by end of this year.
Any real moves will take place after next set of results if the aquisition has gone well. Current price looks too cheap and a fair medium term price may be around 2.40 - 2.60.

Bought into these today @ 105p, have held them before buying @ 43p & 29p and still had them when they touched 2.5p, sadly didn't have the b***s to buy more then, but sold my holding sometime later @ 103p. I feel it's time to get in again. Good luck all, although it's nearly 12 months since the last posting there may be nobody out there.
2517

bought some last week at 114, not too happy about it at moment, but feel fears over dollar weakness and therefore earnings are overdone, main projects are due to infrastructure not housing, anything with debt is getting hammered at present. personally feel it is overdone, hope everyone else does soon as well!!

Hi all ....... I will give you some company with this one ............ though I must admit I don't hold at the moment .................. have traded in / out a few times in the past.

Looking to very soon

Cheers
Amar

Hi all,
I bought in at 157 at the end of May on a recommendation from The Chartist in Shares magazine, I am unimpressed to say the least.

Afternoon Paleman, had a good run with these last year and I believe we'll see another run in the next 6 months. Holding at 130 for me.

With respect to shares mag, always find it best to sit and wait, have got stung diving in with their recomendations eg SEY springs readily to mind. AHT should hold steady from here.

Main concern is debt (which is reducing) and exchange rate, which will probably go against AHT for the medium term, but not long term I hope.

hi steveo???????????????one -$--two--last year one$-1.5 ??????????????????

exactly, most of their revenue is in US dollars which are worth less than last year, however, in time UK rates may well have to drop , this will devalue relative to $, and therefore increase AHT profit, of course also depends on how far dollar depreciates with further fed rate cuts.

This has seen a steady rise so far this week and today seems to be no exception atm, long may it continue. Hope I haven't put the KOD on it now. Good luck all.
2517

Hi Steveo .......................... Did you take any profit out of AHT today ... during the fantastic rise?

All the best
Amar

unfortunately no as was too busy in my other day job, then was stuck in traffic all afternoon trying to et to cardiff on M4. Hering how caterpillars results were in press this am actually thought AHT might get a hit, so very surprised.

someone buillding a stake, T/O maybe, any ideas out there for the rise?

Could someone tell AHT SP that it's going in the wrong direction please.

According to my broker who had a chat with company secretary, AHT debt is long term and does not need to be renegotiated until 2011, is therefore at good price.

Utilisation of new acquisition is now at 70% up from only 55% when purchased.

Economic slow down in US will benefit AHT as constructors will reduce spend on new equipment and opt to hire it instead.

There is also possibility that AHT will sell uk plant hire A-plant, this will obviously benefit balance sheet immensely.

For these reasons I am sticking and will add if there is any further weakness.

Darradev
There you are, its moving up - someone took note lol
Dave

Dave :-)


Now will someone please ask GOO and MNT management to pull the finger out......

What are the prospects for a turnaround here? The chart certainly tells a sad story,but it must all rest on an upturn in US housing ,which doesn,t look to be coming any time soon

From The Times, 21 Nov:

Rumour of the day

Data released early by the American Institute of Architects showed that construction demand had picked up in October from the previous month, thanks to stronger demand for schools and hospitals. ABN Amro believes that the price of Ashtead, the construction equipment hirer, off p to 81p, is wrongly factoring in a US construction crash.

If you can catch this one at the right time ,it could be a big winner.
At the beginning of 2004,it went from below 20 to 240 in early 2006.
However,might be a while before it touches bottom.

Todays excellent results suggest that activity in the commercial construction sector is still strong perhaps the so called economists have got it wrong and fail to see the underlying strength of the US economy.

The devaluation of the dollar "may" have stimulated their economy judging by employment figures etc.

HI FRED I THOUGHT THAT WAS THE IDEA???MAKE THE REST OF US PAY FOR THEIR WAY OF LIFE/

another tough day in AHT land today. unless the Dow recovers the shorters may take hold again. a difficult long to hold at the moment but i reckon this will be a lot higher in the spring.

Be careful, telegraph recommended selling in the short to medium term, as they don't believe that company will be able to keep up level of contracts as US budget shrinks, there are concerns over its debt of 900 million and market cap of 400million, understandably so, However US may need to spend on projects such as deteriorating infrastructure soon to boost jobs and stop the US infrastructure falling apart like certain bridges, so outlook isn't as bad as they say in my opinion.

Waiting and watching first before committing further, at some point this will be a very attractive stock but market certainly doesn't like it at the moment

hi steveo I READ THE SAME STORIES IN THE AMERICAN PRESS//so doing as yourself/

Steveo you have hit the nail on the head re deteriorating infrastructure, like many countries in the 'developed' world the USA has not spent on their infrastructure, I read somewhere that in 2005 their drinking water was given the lowest grading possible by the American Society of Civil Engineers. So AHT should be a beneficiary of any increase in spending on infrastructure.
2517

Anyone with interest in AHT here?

Is this 'on the up' or just tracking sideways at about SP 80?

Any views welcome.

Tricky one this, I don't hold them but i've been in & out of AHT a few times over a 4-5 year period, sentiment is against it, ie the US housing market but they are not unduly exposed to this area so maybe their results on the 4th March will give a clearer picture, debt is high, but I think they could surprise on the upside, all imo of course. Just released some funds from PFL so I may take a look.
2517

Hi all .................. I too have been in / ot of this one over the last couple of years.

But what a drop today.

Tempted to get in at some point .......... Charts suggest it is oversold.

More views welcome.

Good luck
Amar

See what you mean Amar, this one has been off my radar for a couple of weeks so hadn't realised they have dropped from the low 80's. mmm
2517

what's going on here?
down 14%-8 3/4

And yet the Company keeps buying shares almost everday??????

Are any of us brave enough to dip in ................ or do we wait for results?

Cheers
Amar

Toya kindly pointed my sticky fingers at this one, so i bought a few on Friday .... wonder how the news below will affect sp tomorrow ......


Equipment rental group Ashtead Plc., which has recently seen its share price spike on bid rumours, is on the verge of selling its oil and gas technology division to a private equity firm for about 100 million pounds, according to The Sunday Telegraph.
The newspaper said it has learned the company received final-round offers for the division from buyout firms Phoenix Equity Partners and Barclays Private Equity.
Lloyds Development Capital was also in the final round, but it is not clear whether it decided to submit an offer for the business, the article added.
Banking sources said one of the private-equity bidders is likely to move into exclusive discussions in the next couple of weeks and a deal could complete soon afterwards, the newspaper said.

Current broker target set 26.5.08 is 76p.
Any idea where this is heading based on the news, or is this just a hopeful punt?

Harrycat: article from The Times, 28May2008 alerted me to this one:

"This is a gloomy time for the construction industry, particularly companies with exposure to the US, such as Ashtead, the forklift truck and crane hire group. So dealers were dumbfounded yesterday when its shares shot up 11 per cent on 12 million traded - some six times the usual volume.
"The shares closed up 7p at 75p, sparking talk of a bid. An approach from management had been mooted late last year. The rise on such high volumes is too big for the broker upgrade initially rumoured. More likely is that Ashtead is close to selling its oil and gas technology business, which hires underwater cameras and portable weather stations to the booming energy industry. A deal is likely to be concluded in time for results on June 26.
"The company said recently that sale talks were progressing well, having appointed N M Rothschild in April to find buyers for the arm, expected to fetch up to 100 million, which will help to bring down its 1 billion debt. Matthew Earl, who covers Ashtead for Investec, its house broker, said: The most likely thing on the cards is the sale of the oil service business.

Ouch! 1b debt!!! 100m isn't going to make much of a dent in that. So short term spike in the sp then?

By my rough calculations,the results just announced(76 million profit ) puts the company on a P E of just 2!

Maybe, but the sp looks at the future and building sector is dire - look at Estate agents going out of business and homes half-built. Hence the Hire industry will not have the resources to replace their old/rusting kit... IMHO...arrgh!

I can't argue about the economic problems,but Ashtead results look much better than expected,and with Obama stimulus plans and the like,tool hire may be the option more widely used.
There follows an article from The Daily Telegraph.

Ashtead lifted by US and UK infrastructure spending plans
Ashtead Group shares jumped after the construction equipment hire company said Government plans to increase infrastructure spending could start to boost the market by the end of 2009.

By Graham Ruddick
Last Updated: 1:42PM GMT 09 Dec 2008

Ashtead Group
The company said statements from political leaders in the US and UK were "encouraging" and that they could benefit as smaller rivals collapse and contractors increasingly choose to rent equipment rather than invest in their own because of financial constraint and uncertain order books.

Alistair Darling, the Chancellor, has said 3bn of public sector spending in the UK will be brought forward into 2009 and the Barack Obama, the US president-elect, has announced that he plans investment in national infrastructure not seen since the creation of the highway system in the 1950s. Both schemes are designed to stimulate the economy as concerns about rising unemployment grows.

However, Ashtead warned they were yet to see "firm financial commitments" from governments.

Ashtead, which conducts 85pc of its business in the US, was speaking as it revealed mixed results for the six months to October 31 and unveiled a cost-cutting programme to ensure the business is the "right size" for the anticipated levels of demand.

Pre-tax profits slumped 44pc to 39.5m in the half-year as the company incurred 37.1m of exceptional charges through the downsizing of the business. Underlying pre-tax profits rose to 76.6m from 71.5m.

Ashtead, which rents out a range of industrial equipment from diggers to small tools, has launched the cost-cutting programme after being hurt by the slump in housing and commercial construction.

The outlook for infrastructure construction in utilities, prisons, schools and transportation remains "good" for the medium term but future strength will depend on the Government proposals, it added.

Store closures, headcount reductions and a downsizing in the number of delivery vehicles have been applied by Ashtead with the aim of saving 45m in costs annually. The company reduced its staff from 9,594 worldwide to 9,381 during the period, although 130 of those were from the sale of Ashtead Technology.

The 89.8m generated from the sale of its oil and gas technology division was used to pay off the company's troublesome debts, which still managed to rise to 1.1bn from 963m because of the strengthening dollar. However, the company said the debt facilities were long-term and were structured to be "effectively covenant free".

Geoff Drabble, the chief executive, said: "Ashtead has continued to perform well against the background of weakening market conditions. Our strong and diversified market positions have and will continue to benefit the group but it is also important that we take prompt actions based upon realistic assumptions of the future trading environment.

"Longer term, our strong market positions, long-term committed debt facilities, cash generative and flexible business model and the decisive restructuring exercise which we are undertaking allow the board to view the future with confidence."

Shares in the company were trading up 5.5p - or 18pc - to 36.50p at lunchtime.

Text Size Email this article
Print this article
Share this article
delicious
Digg
Facebook
Fark
Google
Newsvine
Reddit
StumbleUpon
http://www.telegraph.co.uk/finance/newsbysector/epic/aht/3689686/Ashtead-lifted-by-US-and-UK-infrastructure-spending-plans.html
Related Content
More on Ashtead GroupMore on ...
Ashtead Group Get feed updatesFinance Get feed updates

Goes ex-div on the 28th jan '09.
Set to yield 6.0% in 2009.

Ashtead is up from under 30p ,so has had a good run of late.Some pullback is now taking place.
Prospects look better with the Obama stimulus package set to kick in.
Also,Ashtead has done the rags to riches thing before,going from 10p to 240 a few years ago!

Chess

Or done the riches to rags before - depending on when you start your chart !!!!

Quite right!
At least however,they are at the stage where they are putting on new clothing!
That dividend loks good.

IMHO any rise is due to USA having a new President - but until he produces the stability required over there, we are only Trading a false dawn.
What's surprising is the purchase of their own shares . . .. when will companies stop destroying shareholder funds by this stupid activity?
If they'd wanted to - they should have done so a few months ago with the sp abt. 30p - - - but I suspect it will return, making recent buy-backs the same as burning the cash.

Surely it's easy to say now that they should have bought at 30p. It's possible that they now expect the sp to rise further, in which case 42p will seem a good price.
I have got to agree that share buy backs have been generally bad news for companies recently, but in a falling market that will always be the case. Assuming that the market is now going to sideways trade for a while before the upturn, this particular buyback may seem a good idea in 12 months.
I am happy to hold my stake in AHT for now in anticipation of better times towards the end of 2009.

It's not looking like a good idea at the moment, distinct lack of support at the moment, looks like your comments (hangon) were spot on. Unfortunately I bought in last week and am now 15% down, if it hits 30p again will top up as that could possibly be a double bottom, or just an opportunity to suffer a little more for the next few months. Should do well on a long term basis, so more profit later.

steveo - did similar buying in this week, and have every intent to add should the price hit 30.5 (easier to get the order filled).

Have swung between a pro-buy back and anti buy-back person over the months but looking back it has to be anti. The pro-argument is EPS based, but the SP graph is market based, and carries much, much more weight.

One of the oldest adages on the market is not to fight/buck the market - we seem to have to learn the same lessons over and over. Perhaps buy backs would make sense on a rising trend ?

MoneyAM
"Equipment hire company Ashtead's pre-tax profits fell 41% in the third quarter to 11m.

But the firm says the 45m cost-cutting programme announced in December is now substantially implemented.

It said third quarter performance in line with expectations in its seasonally most uncertain period and revenue for the nine months to the end of January rose 8% to 798.6m.

It said all debt is committed for the long term and structured to remain covenant free.

Chief executive Geoff Drabble said: Whilst we are operating in difficult and uncertain markets we have been preparing for these conditions for some time.

'Our actions in right sizing the business, which are already evident in our performance, together with our strong balance sheet allow the Board to anticipate full year results for profit and cash in line with our expectations'."

BROKER NEWS - MoneyAM - Ashtead upgraded to hold from sell at Panmure Gordon, target price stays 35p.

From the Blue Index Blog

Ashtead Vulnerable
May 11th, 2009

The signs are there that things may be bottoming out for the housing market and in particular housebuilders. Plant hire group Ashtead (AHT) has fared well in recent weeks, as the fortunes of its business depends heavily on the strength of the construction sector.

But this morning the group warned the markets that it expects underlying full year pre-tax profits to 30 April 2009 to be within the lower end of current forecasts. Added to this the group said recent rental rate and revenue trends suggests that profits in fiscal 2009-2010 are also likely to fall below the boards earlier expectations. Although rental volume continue to hold up well, and in line with expectations, as expected, construction markets in the UK and US are weaker with private sector projects particularly impacted by the shortage of funding. The Ashtead board alo said it had reduced net debt by GBP100m to GBP1.04bn, and it remains highly confident in its strength for the longer term.

Full transcript here
http://blog.blueindex.co.uk/2009/05/ashtead-vulnerable/

The debt is 4x the Mkt Cap . . . (DYOR), grief this is a dull business - and I don't think the "Housing Market" is ready to jump-start too soon.
First, there are plent of reposessions available for anyone with cash.
Second, there are few mortgages available, esp for properties not yet built (which increases risk and makes a forced-sale quite difficult)
Third, AHT is a supplier of kit that is lying about on many sites, or which can be picked-up on the cheap. . . . . . yet in reality there are plenty of "stopped" building sites if there should be anyone daft enough to want a new house quickly.
Finally, the housing market was in "bubble" territory for the last 5+years IMHO - and until prices fall further there will not be a restart . . . . sadly there are also many B2L properties about to be dumped on the Market - as amateur landlords are squeezed dry by falling rents, arrears, etc. while the Landers demand regular payments.
AHT may be a Bellwether for construction, but once the London-Olympic Joker is played-out there is only Crossrail.

Ashtead Group target moved to 1.10 from 84p by RBS

strong support at 80p, looking good for a quick move to 83p before the next leg up which should be next week, if not later today IMHO

Lovely chart with previous resistance points overcome and new highs within breathing distance.

Should go on from here to form a uptrend channel:

4 bullish Brokers with buy recommendations recently........

1. Broker recommendation full details

Date: 9 September, 2009
Broker: UBS
Company: Ashtead Group


Recommendation:
Raises price target to 120p from 110

InterMarket Stock's recommendation rating:
Buy

2. Broker recommendation full details

Date: 7 September, 2009
Broker: Investec
Company: Ashtead Group


Recommendation:
Raised to Buy from Sell price price target raised to 105p from 40p

InterMarket Stock's recommendation rating:
Buy

3. Broker recommendation full details

Date: 3 September, 2009
Broker: RBS
Company: Ashtead Group


Recommendation:
Retain Buy price target raised to 110p from 84p

InterMarket Stock's recommendation rating:
Buy

4. Broker recommendation full details

Date: 2 September, 2009
Broker: UBS
Company: Ashtead


Recommendation:
upgrade to Buy from neutral - price target 110p from 57

InterMarket Stock's recommendation rating:
Buy

Interim results out tomorrow, 9th March.

TA Analysis from Investtech.........

Very Bullish

Positive Candidate -Medium term, Jun 2, 2010 Analysis Explanation

ASHTEAD GROUP is in a rising trend and a continued rise within this trend may be expected. In addition, the price has now fallen back towards the floor of the trend channel, which should give a reaction up. The stock has support at pence 90.00 and resistance at pence 124. The volume balance is positive and strengthens the stock in the short term. RSI diverges negatively against the price, which indicates a danger for a reaction down. The stock is overall assessed as technically positive for the medium long term.



Period Vol.bal. Volatility Liquidity +/- %
1 day - 2.94% 689.52 +1.95%
5 days 73.43 10.46% 507.89 +9.60%
22 days 35.75 28.84% 368.57 -10.02%
66 days 34.65 59.03% 318.83 +29.55%

Ashtead Group AHT looks like its got a lot of momentum behind it in a nice uptrend channel.



Fairly recent broker Buy Note out aswell with a 160p target.....

Date Broker name New Price Old price target New price target Broker change

28-Apr-10 UBS Buy 120.60p 120.00p 160.00p Reiteration

Profit plunges to 5 million pounds this year from 87.4 million pounds last year.

Ashtead

110p


Questor says BUY

The stock market is a leading indicator. Its movements are, in theory, based on a consensus view of future events. That's why people say "the market is never wrong", even though sometimes it patently is.

This means that shares in a cyclical company rise in anticipation of an increase in profitability before it happens.

On this basis, Ashtead was recommended as one of Questor's tips of the year on January 1.

Ashtead hires plant and equipment to the construction sector, with about 80pc of its business being in the US.

The most significant thing about the company's 2009 results released last week was not that the group saw an 87pc slump in profitability to 5m. The important thing is that the company managed to stay profitable in what was one of the worst years the industry has experienced. This is a credit to the company's management, size and flexibility.

Revenues in the year to April 30 fell by about a quarter, but the last three months of the year between January and April saw a definite improvement. Revenues were down just 3pc on a year-on-year basis.

Of course, there are still major problems in Ashtead's end markets. Geoff Drabble, chief executive, told Questor last week that from February onward the company had seen a "gentle" improvement in the amount of the group's fleet that was on rent, as well as yields.

A gentle recovery in US construction is likely to give a significant boost to Ashtead's margins and cash flow. Last year, 80pc of revenues came from North America, with 87pc of profits generated in the region.

Management have managed the downturn well. Not only has net debt been cut at this challenging time to 829m from 1.036bn over the year but the company bought back 10pc of its equity at an average price of 67p a share.

Usually, Questor is not a fan of share buy-backs. Companies tend to do it when they are generating excess cash in a boom time and the share price is high. This is not as efficient a way of distributing cash to shareholders especially if the share price falls.

However, buy-backs undertaken when the share price is low should have a very positive effect when markets improve. Ashtead got this one right.

The company even raised its dividend payment. The final dividend was 2p, making a total payout for the year of 2.9p, compared with 2.575p in the previous year.

The final payment will be made on September 10 and the shares go ex-dividend for this payment on August 18. The company plans to keep the dividend at a "sustainable level" through the cycle, which is also a good example of the management's prudence.

Ashtead plans to invest 175m of its cash flows in its fleet over the next year to replace the older part of its fleet, to keep the average age of its equipment flat. This is a prudent move.

The shares are trading on an April 2011 earnings multiple of a heady 92.5 times, but this falls to 17.9 in 2012 and 10.1 in 2013. The yield is 2.6pc.

The shares were tipped in January at 81.2p and they are up 35pc compared with a market down 3p. The shares remain a buy for recovery and Questor regards them as one of the best plays on a US recovery although any double-dip recession could hit the shares hard.

The shares are trading on an April 2011 earnings multiple of a heady 92.5 times, but this falls to 17.9 in 2012 and 10.1 in 2013.

And this is rated a buy !!!!!!!!!!

Like you can't find better value elsewhere.

This is still looking expensive at 100p... since it depends much on US economy.
Wait for 80p.

Keep on shorting AHT... 70p target 4 me... don't listen to Questor.

The chart suggests that 90 is as low as it is likely to go,unless the market takes a further nosedive. It is down from highs of about 125 a few months back

This will slide from here as forecast is not as healthy as it seems... 93p now

The 2 year chart suggests a nice move to the upside to 120-125

Given as a bid target and a buy in this weeks' Shares' at 99.9p

Questor share tip: Ashtead is one of the buys of the year

By Garry White
Published: 6:40PM BST 17 Aug 2010

1 Comment

Ashtead

94.65p +4.9p


Related Articles
Ashtead: shares, charts, data says BUY

Plant-hire group Ashtead is one of Questors 2010 tips of the year. The company has difficult end markets but the shares should outperform significantly when the recovery takes hold.

Ashtead hires plant and equipment to the construction sector, with about 80pc of its business being in the US

The downturn could benefit the group over the longer-term. As one of the USs largest players, the company only has a 5pc market share. Smaller players have not been able to invest in their business but Ashtead plans to invest 175m in its fleet over the next three years. It remains profitable and continues to pay a dividend.

There is also likely to be a shift to rental. Companies are renting large equipment instead of buying it as they try to preserve capital.

A gentle recovery in US construction is likely to give a significant boost to Ashteads margins and cash flow. Last year, 80pc of revenues came from North America, with 87pc of profits generated in the region.

One interesting point to note is the relative performance of Ashtead shares and its US-listed peer. US-listed United Rentals has outperformed Ashtead over the past few months and both companies operate in the same market. This gap is likely to close.

The shares are trading on an April 2011 earnings multiple of a steep 65.5 times but the last time Questor updated on the shares this multiple stood at 95. This falls to 15.3 in 2012 and just 9 in 2013. The yield is 3.2pc.

The shares were tipped in January at 81.2p and they are up 17pc compared with a market down 3pc. Buy ahead of the first-quarter update on September 7.

70p on the cards... my target getting nearer.

so much for scribbler questors great tips, what do journos know about shares?!!

US housing down (News item a few days ago)- seems the US housing recovery isn't likley to light many lights.
I suspect like here, there are too many properties spare ( bought in good-times and now unsold/unwanted and falling in price)
...so who is building new?
Without new homesteads there is little need to more infrastructure....which is where Ashtead comes in......only when Builders have "used-up" their own plant - at current levels I don't suppose much Plant is being used...let's hope they let it rust, so AHT can hire new - but it won't be for a couple of years, probably four, IMHO.
((It just doesn't look good to have too much Plant on your Books.))
At least in UK we have the Olympics - and building should continue past 2012, as we second-fix earlier mistakes.....oh well.


Questor is probably right "when" the market turns, AHT will outperform . . . . but that's no comfort to LT-holders: I suspect we may have to wait until beyond 2012 so wait a little longer, eh when the PE ratio is below 10.
-but what do I know, either?

Sounds logical to me I'm waiting too

First quarter figures from equipment rental firm Ashtead should generate full year earnings estimate upgrades, Singer Capital Markets believes, with the outlook for the company looking promising.

First quarter profit before tax of 11.9m significantly exceeded consensus, and our own very bullish estimate of 7.4m. However, Ashtead is building momentum in both its US and UK operations with the supply/demand relationship in balance, rates rising and its peers also reporting similar trends, said FinnCap analyst Andy Murphy.

The broker thinks the current valuation looks compelling and it has reiterated its buy recommendation and 185p price target.

Based on Singers earnings forecasts for fiscal 2012 the company is trading on a price/earnings ratio (PER) of 10.3, and this is projected to fall to 7.4 in 2013. This compared to an average mid-cycle for ward PER of 16.5 for the sector.

Finally, with the dividend now increasing, holders can look forward to an increasing return. We anticipate the dividend will be more than covered by earnings this year giving scope for Ashtead to exceed current dividend growth expectations, the broker said.

Ashtead is my bogey stock.
When I buy the market decides that it is time to sell,and when I sell,
Well I think you can guess the answer to that!

This is one to short because it has excess exposure to US which is at risk of double-dip.