Tool hire giant Ashtead hammered by US slump
SHARES in a firm that rents out equipment such as diggers, trailers and leaf blowers plunged as business dried up in North america.
Ashtead Group’s tools are often hired to clean up the damage caused by floods and other natural disasters.
But rental revenues in the third quarter in North america – where it operates the Sunbelt brand – were hit by fewer emergency response calls. The impact of the hollywood strikes also weighed on the US business, which makes up 86pc of group sales and includes supplying film and TV studios with equipment.
The FTSe 100 firm expects its group rental revenue in the year to april 30 to increase at the lower end of its 11pc to 13pc target range. Shares dropped 9.4pc, or 536p, to 5192p.
Inchcape shares were also on the slide, crashing to their lowest level for more than three years as it warned of a slowdown this year.
The car dealer said revenues soared 41pc to £11.4bn in 2023 while profits rose by nearly a quarter to £413m.
But while it expects 2024 ‘to be another year of growth’, it warned it will not be as strong as last year amid ‘prudent expectations for recovery in certain markets’.
Shares plunged 8.2pc, or 56p, to 624.5p – a level not seen since December 2020 – making it the biggest faller on the FTSE 250, which rose 0.1pc, or 21.95 points, to 19271.03. and as attention turned to today’s Budget, the FTSE 100 inched up 0.08pc, or 5.83 points, to 7646.16
Lloyd’s of London insurer Hiscox posted record annual profits – up nearly 130pc to £492m – and launched a share buyback. Shares gained 5.4pc, or 60p, to 1181p.
Shared office giant IWG gave its strongest hint yet that it is preparing to ditch its UK listing and move its shares to New York.
The company, which owns the regus and Spaces brands, is switching to reporting in dollars rather than pounds this year.
The FTSe 250 group has also pledged to simplify its financial reporting and reduce its debt.
Chief executive Mark Dixon said: ‘The final step is to consider moving the listing to one of the US exchanges.’ Shares lost 2.6pc, or 4.8p, to 180p.
Quality assurance business Intertek reported its highest revenue growth in the last ten years.
The company, which tests products to make sure they meet safety standards, such as the fuel inside the US president’s air Force One, said sales rose 6.2pc to £3.3bn in 2023. Shares gained 6.2pc, or 284p, to 4905p.
Newspaper publisher Reach said its business is on a clearer path now it has sorted out two ‘long-term uncertainties’ that had plagued the business.
The company, which owns publications such as the Mirror, express and Daily Star, expects its pension commitments from 2028 to fall by around £40m while the cost of settling legal claims has reduced by £20.2m. Shares rose 13.1pc, or 7.8p, to 67.25p.
another riser was Trustpilot, gaining 8.4pc, or 15.3p, to 197.8p, after the review website’s rating was upgraded by JP Morgan.