EQUIPMENT hire giant Ashtead has bemoaned a "challenging" UK market, in which profit of its home APlant business shrunk by nearly a third in the first half of the year.

The FTSE 100 company enjoyed a six per cent overall rise in profit, owing to a strong performance in its core US unit Sunbelt, but struggled in its smaller business on home soil.

Shares fell 6.2 per cent to 2,220p yesterday, as analysts raised concerns about Ashtead's growing reliance on its US business, which makes up 86 per cent of overall revenue.

Profit before tax rose to £660m for the six months ending 31 October, while revenue was £2.68bn — a 14 per cent rise.

Earnings per share were up 10 per cent, as the firm enjoyed a 17.3 per cent rise in profit at its Sunbelt business in the US to £755.9m.

But profit at A-Plant, Ashtead's UK arm, fell 32.1 per cent to just £30m.

The London-listed firm said it was "refocusing" its UK business on "leveraging its platform to deliver longterm sustainable results, while generating strong cash flow".

"The UK market remains challenging," said chief executive Brendan Horgan.

Richard Hunter, head of markets at Interactive Investor, said yesterday of the news: "While there is a pre-tax profit which is up the number is light of expectations.

"Furthermore, there are wider worries overhanging the stock, not least of which is the company's reliance on the US part of its business."

(c) 2019 City A.M., source Newspaper