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Ashtead posts ‘strong’ quarterly numbers
Ashtead (AHT) released an upbeat set of quarterly numbers last week in which revenues jumped 26% for the first quarter of the which most of the growth was organic.
The US-focused equipment hire specialist said the “strong” performance was driven by a 26% rise in equipment rental income, with contributions from both price and volume increases.
Ashtead’s underlying profit before tax for the period was up 29% to $555m – reflecting Ashtead’s impressive pricing power – its ability to pass on rising costs to its customers.
Free cash flow dipped to $91m from $420m due to a doubling of capital expenditure to $667m. And Ashtead ended July with net debt of $7.7bn, which was comfortably within its target range of 1.5 to 2 times adjusted earnings.
Ashtead’s CEO, Brendan Horgan, commented:
“The Group has made a strong start to the financial year across all geographies with rental revenue up 26% at constant currency” …
“Our business is performing well with clear momentum in supportive end markets. 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”.
AHT Daily Candle Chart
AstraZeneca looks to more than double new cancer drugs by 2030
Bloomberg News have revealed that AstraZeneca (AZN) is aiming to more than double its portfolio of new cancer drugs by the end of this decade, seeking the top spot in the world’s most lucrative category of medicines.
Addressing Europe’s biggest cancer conference last week, AstratZeneca’s oncology chief, Dave Fredrickson said “We have the opportunity to be the No.1 oncology player”. Doubling the number of new cancer medicines is part of the plan, “The strategy’s working that we have in place” he added.
Sales of cancer drugs account for about a third of the AstraZeneca’s revenue. The unit “is on a trajectory to be one of the leading – if not the leading – therapeutic areas in terms of size and growth,” Fredrickson said.
On the price chart, AstraZeneca’s shares have rallied from the ascending trendline which has formed during the last six months.
AZN Daily Candle Chart
British power stocks rise as UK PM Truss says no to windfall tax
Centrica (CNA) have enjoyed a strong rally since the announcement of Liz Truss and UK Prime Minister last week…
Shares in the British Gas owner have jumped more than 15% from their end August lows as new PM Truss said “I am against a windfall tax. I believe it is the wrong thing to be putting companies off investing in the United Kingdom”.
Truss also said the Treasury would announce a joint scheme working with the Bank of England to address the extraordinary liquidity requirements faced by energy firms, worth £40bn.
Along with the support for bills, Truss announced more than 100 new exploration licences for oil and gas in the North Sea and the removal of a ban on fracking for communities which are willing to go ahead with it.
With more stability over domestic policy, Centrica’s share price looks well positioned to breakout to new trend highs.
CNA Daily Candle Chart
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