A-Plant reorganisation gathers pace as new business formed

A-Plant has continued its internal re-organisation with the separation of its plant and tool hire businesses and the formation of a new business called Tool Hire Shops.

The new chain, which will have around 80 outlets initially, follows the model set by the creation of A-Plant Specialist Products in the middle of last year.

The development of a tool hire business with its own identity is based on A-Plant's desire to achieve a greater slice of the domestic market, currently worth around £700m. "The top three companies account for nearly half of this with £335m, and we're fourth with £35m so there's a lot of market for us to aim at," said chief executive officer Sat Dhaiwal.

The company also intends to increase the number of these tool hire outlets - "We can probably double the number without duplicating depots," said Dhaiwal - and target new customers in the process. Currently tool hire accounts for around 17% of the A-Plant's turnover.

"We're starting with a blank sheet, and we'll consider anything from high street for the DIY market to on-site tool hire shops like the ones we've had at Leicester City football ground and elsewhere," he added. To this end the company has purchased Avosdrive, a tool hire business located in Bow, east London.

The re-organisation also involves the creation of two new plant business - A-Plant North/Scotland and A-Plant South/Midlands.

Ashtead Group chief executive George Burnett said: "It's not being overly self-critical to acknowledge we've had a certain degree of indigestion after our rapid growth in the 90's, but this new structure will allow us to take the business forward."