What recession? Ashtead has long been viewed as a bellwether for the US economy but the equipment hire giant has defied the blows dealt by double-digit inflation.
Guidance for rental revenue growth this year has been raised to between 18 and 21 per cent, above the 15-17 per cent increase previously expected. The US and Canada, where the FTSE 100 constituent now generates just over 90 per cent of revenue in aggregate, are the driving force for stronger industrial demand.
The difference between past and present guidance is split evenly between higher volumes, better pricing and ancillary revenues, which include things such as delivery charges. Improved rental rates and robust demand mean Ashtead has been able to pass on the bulk of the inflationary pressures
