INVESTORS were uncharacteristically uncharitable towards construction rental company Ashtead yesterday, with shares down despite revenues jumping to north of $2.2bn (£1.9bn) in the first quarter.

Group revenues were boosted by a housebuilding boom in the US, under the name Sunbelt Rentals.

Ashtead was last year's equities darling, up 74 per cent on the year, but shares fell three per cent yesterday to leave the stock trading at a 30 per cent discount from the start of the year.

Profits before tax came in at a healthy 28 per cent year on year increase to just shy of half a billion.

Analysts remained impressed, with Peel Hunt's Andrew Nussey suggesting that momentum remained strong in the US and UK business had motored despite the ending of an NHS Covid-19 contract.

Chief executive Brendan Horgan said the group had made a "strong start" to the year, adding a combined 33 locations in North America through bolt-on acquisitions and capital investment.

"We are in a position of strength and have the experience to navigate the challenges and capitalise on the opportunities arising from the market circumstances we face, including supply chain constraints, inflation, labour scarcity and economic uncertainty, all factors which we are convinced are drivers of ongoing structural change," he said.

(c) 2022 City A.M., source Newspaper