Ashtead pre-tax profit rises 7% in first half

Pre-tax profit at plant hire group Ashtead has risen 7% for the first half of the year, but the company warned that a struggling economy meant that trading in the second half will be weaker.

Ashtead said that "prompt action" had been taken to reduce its cost base by £45m.

The six months to 31 October 2008 saw pre-tax profit hit £76.6m, up from £71.5m.

Sales for the period were also up by 7% to £546.3m.

Chief executive, Geoff Drabble, commented: "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."