Industry key to Ashtead's growth

Ashtead Group's aggressive stance in the market place continues to pay dividends. On Monday the quoted UK plant hire group announced a 35% increase in pretax profit for the year to April.

Ashtead posted profits before exceptional items of œ18.3 million, up from œ13.6m last time around.

Total sales rose by 42% compared to 1995 to œ95.9 million from œ67.3m.

Asked about the company's continued good fortune, which has seen turnover treble in the last three years, Chairman Peter Lewis said: "Despite a reduction in hire rates of between 5-10%, particularly in the last six months of the year when the market was particularly difficult, new profit centres established in 1994 together with the Carter Bradbury acquisition in 1995 have been instrumental in the marked growth in turnover."

He added: "We have grown our share of a market which has not grown at all."

Today the company operates from more than 160 depots and has plans to open another 30 before next year's year end.

Lewis denied that February's acquisition of UK firm Leada Acrow and US business McLean Rentals had had a significant impact on the year end figures. "Of the year's 18.3 million reported pre-tax profit only œ200,000 came from Leada Acrow," he said.

Ashtead's decision to reduce its dependancy on construction combined with agressive pricing policies and unique terms with suppliers have also helped the balance sheet.

In contrast with its position in 1990, when it depended entirely on construction contracts, today's dependancy on the industry is less than 30% - a high percentage of business coming from the industrial sector.

Despite admitting "this dependency is as low as I'd like to see it go", Lewis does not believe the position will alter in the next 12 months.

To keep shareholders happy, taking market share remains the Group's aim for the next 12 months. At present it claims a 12% share of the UK hire market.