Hurricanes have turned out to be good news in the past year for equipment rental company Ashtead.
After three major storms last year the income had increased in the group – which supplies tools from concrete mixers to industrial chillers – it said that it is a & # 39; crisis center & # 39; in the Carolinas founded as the hurricane Florence came closer.
The center has around 30 employees and rents cleaning equipment such as power generators and pumps.
Even before the worst hurricane season hit the US, Ashtead – who collects most of his money through the American company Sunbelt – had won it.
Even before the worst hurricane season hit the US, Ashtead – who collects most of his money through the American company Sunbelt – had won it in
It announced yesterday that rental income for the three months to July was 19 percent higher than £ 961 million, as profit before tax increased 23 percent to £ 285.6 million.
Nicholas Hyett, analyst at Hargreaves Lansdown, said: & # 39; Donald Trump's economic policy is very good for Ashtead.
A huge corporate tax cut has done wonders for profits this year, and it has also led to a round of investments in the domestic US economy, which sees the demand for Ashtead's construction equipment rising. # 39;
Management said that the full year profit would be higher than previous expectations, and that it would expand its share buyback program.
When a company picks up its own shares, the remaining shares become more valuable in the hands of investors.
Ashtead also set out plans to make a spending allowance to fill in its rental fleet while the demand was strong. Hyett warned, however, of the need to keep the debt to a minimum.
Stock Watch – Produce investments
Potato and Daffodil farmer Produce Investments shot when it accepted a £ 53 million takeover offer from private equity firm Promethean Investments.
A yield of 193p per share was offered to investors, whereby Produce shot 31.6 percent or 45p to 187.5p.
The chairman of Produce, Ronald Barrie Clapham, 66, gets £ 11.5 million from the deal.
The boss of Produce Investments, Angus Armstrong and his wife Bronwyn, will collect almost £ 1 million.
He said: & # 39; A building moment would reach the income much faster than Ashtead can pay off debts. With the advance of a presidential administration that is, to say the least, erratic, we are pleased that we can see the leverage at the bottom of the target and we would rather stay for the time being. & # 39;
The shares grew yesterday by 5.2 percent or 118p to 2398p.
Despite the profits of Ashtead, the FTSE 100 ended the day with 0.08%, or 5.76 points, at 7273.54, while the pound sterling rose higher than expected wage growth.
Because many companies sell their products abroad on the blue-chip index, a stronger pound generally pushes the FTSE 100 lower. Sterling hits of $ 1,309 in the morning before settling for $ 1,301.
Tobacco companies Imperial Brands and British American Tobacco were particularly vulnerable, 3.3 per cent respectively (or 90 p, to 2608.5 p) and 2.7 p (or 99 p to 3554.5 p).
In the FTSE 250, the flamboyant founder and President Vernon Hill jumped £ 818,700 while buying 30,000 shares in the company.
Investors took the purchase as a sign of confidence, bringing shares up 1.2% or 32p to 2760p.
Hill, often accompanied by his Yorkshire terrier Sir Duffield II, holds 5.1 percent of Metro Bank.
Outside the largest companies in the United Kingdom, another construction company was piling up.
Alumasc, which supplies premium construction products, climbed 10.4 percent or 13p to 138.5p.
The results for the full year, despite being lower than last year, were in line with previous guidelines. It was a tough year for Alumasc, which had to contend with bad winter weather, the collapse of contractor Carillion and a smaller number of large construction projects.
Asthma inhaler manufacturer Vectura meanwhile prepared for more difficult times. The company said it was thinking of saving its products in case the UK left the EU without Brexit deal and the supply chain was disrupted.
The company pushed the warning into the half-year results, which showed that sales rose 1.4 percent to £ 79.9 million. The shares rose by 0.1 percent or 0.1p to 74.1p.