Sunbelt reports quarterly revenue increase; slight decline for the full year

Sunbelt Rentals, Fort Mill, S.C., reported total revenue of $1.38 billion during the fiscal fourth quarter, compared to $1.21 billion for the same period last year. Total revenue for the full year was $5.42 billion, a 1 percent decrease compared to $5.49 billion the year before. Rental revenue was down 2 percent.

In the UK, Sunbelt Rentals reported total revenue of £191.0 million (US$268.9 million) during the fiscal fourth quarter, up 83 percent compared to £104.1 million (US$146.7 million) the year before. Total revenue for the full year was £635.1 million (US$894.4 million), up 35 percent compared to £469.2 million (US$660.8 million) the year before.

In Canada, Sunbelt Rentals’ total revenue was C$144.3 million (US$118.4 million) during the fiscal fourth quarter, compared to C$99.9 million (US$82.0 million) the year before. During the full year, total revenue was C$500.9 million (US$411.3 million), compared to C$420.7 million (US$345.5 million) the year before.

Ashtead Group — the parent company of Sunbelt Rentals — reported revenue for the fiscal fourth quarter of £1.27 billion (US$1.79 billion), up 23 percent compared to £1.13 billion (US$1.60 billion). Revenue for the full year was £5.03 billion (US$7.08 billion), compared to £5.05 billion (US$7.11 billion).

The following acquisitions also were completed in 2021:

• On Feb. 3, 2021, Sunbelt US acquired the business and assets of DC Rentals — a general tool business in Connecticut.
• On March 26, 2021, Sunbelt US acquired the business and assets of Harford Rental Service — a general tool business in Maryland.
• On April 16, 2021, Sunbelt US acquired the business and assets of American Aerial Equipment — a general tool business in Massachusetts.
• On April 23, 2021, Sunbelt US acquired the business and assets of Ross Aerial Equipment — a general tool business in Arizona.
• On April 28, 2021, Sunbelt US acquired the business and assets of Tomcon Industries — a general tool business in New York.

“We returned to growth in the fourth quarter with rental revenue up 15 percent over last year and up 14 percent when compared with the fourth quarter of 2018/19, both at constant exchange rates. This completes a year of market outperformance across the business with full year rental revenue up 1 percent at constant exchange rates. I am extraordinarily proud of, and grateful to, all our dedicated team members who have made this possible, delivering for all our stakeholders, all while keeping our leading value of safety at the forefront of what we do,” said Brendan Horgan, Ashtead CEO.

“Our performance this year illustrates the benefits of our long-term strategy to broaden and diversify our end markets and strengthen our balance sheet. This has enabled us to capitalize on our increasing scale while, at the same time, maintaining the business’ agility. The last year has proven the strength in our business model during a difficult period in the economic cycle, through responding in the manner we did to the challenges arising as a result of the pandemic. Our performance during this period resulted in record free cash flow for the twelve months of £1,382m (2020: £792m) contributing to reduced leverage of 1.4 times compared to 1.9 times a year ago and adjusted pre-tax profit of £998m, only 2 percent lower than a year ago on a constant currency basis,” he said.

“We have shown that our business can perform in both good times and more challenging ones. We enter the new financial year with clear momentum, strong positions in all our markets, supported by high quality fleet, a strong financial position and our exciting new Sunbelt 3.0 strategic plan, positioning us well to respond to market conditions and capitalize on opportunities. We will invest to drive long-term sustainable growth and returns and strengthen the business. The benefit we derive from the diversity of our products, services and end markets, our investment in technology and ongoing structural change, enhanced by the environmental and social aspects of ESG, enables the board to look to the future with confidence,” Horgan said.