MARKET REPORT: Tool hire giant Ashtead hammered by US slump

Shares in a firm that rents out equipment such as diggers, trailers and leaf blowers plunged as business dried up in North America.

Ashtead Group’s tools are often hired to clean up the damage caused by floods and other natural disasters.

But rental revenues in the third quarter in North America – where it operates the Sunbelt brand – were hit by fewer emergency response calls. 

The impact of the Hollywood strikes also weighed on the US business, which makes up 86 per cent of group sales and includes supplying film and TV studios with equipment.

The FTSE 100 firm expects its group rental revenue in the year to April 30 to increase at the lower end of its 11 per cent to 13 per cent target range. Shares dropped 9.4 per cent, or 536p, to 5192p.

Subdued demand: Ashtead Group’s tools are often hired to clean up the damage caused by floods and other natural disasters

Inchcape shares were also on the slide, crashing to their lowest level for more than three years as it warned of a slowdown this year.

The car dealer said revenues soared 41 per cent to £11.4billion in 2023 while profits rose by nearly a quarter to £413million.

But while it expects 2024 ‘to be another year of growth’, it warned it will not be as strong as last year amid ‘prudent expectations for recovery in certain markets’.

Shares plunged 8.2 per cent, or 56p, to 624.5p – a level not seen since December 2020 – making it the biggest faller on the FTSE 250, which rose 0.1 per cent, or 21.95 points, to 19271.03. 

And as attention turned to today’s Budget, the FTSE 100 inched up 0.08 per cent, or 5.83 points, to 7646.16

Lloyd’s of London insurer Hiscox posted record annual profits – up nearly 130 per cent to £492million – and launched a share buyback. Shares gained 5.4 per cent, or 60p, to 1181p.

Shared office giant IWG gave its strongest hint yet that it is preparing to ditch its UK listing and move its shares to New York.

Stock Watch – Argo Blockchain

A slump in bitcoin production sent shares in Argo Blockchain tumbling despite the digital coin’s soaring value.

The cryptocurrency miner’s output in February was 21 per cent lower than the month before due to a maintenance-related outage at a facility in Arizona.

Argo added that its mining revenue last month fell 15 per cent to £3.5million compared to January.

It also agreed to sell its data centre in Canada for £4.8million.

The stock slumped 12.8 per cent, or 2.24p, to 15.26p.

The company, which owns the Regus and Spaces brands, is switching to reporting in dollars rather than pounds this year.

The FTSE 250 group has also pledged to simplify its financial reporting and reduce its debt.

Chief executive Mark Dixon said: ‘The final step is to consider moving the listing to one of the US exchanges.’ Shares lost 2.6 per cent, or 4.8p, to 180p.

Quality assurance business Intertek reported its highest revenue growth in the last ten years.

The company, which tests products to make sure they meet safety standards, such as the fuel inside the US president’s Air Force One, said sales rose 6.2 per cent to £3.3billion in 2023. Shares gained 6.2 per cent, or 284p, to 4905p.

Newspaper publisher Reach said its business is on a clearer path now it has sorted out two ‘long-term uncertainties’ that had plagued the business.

The company, which owns publications such as the Mirror, Express and Daily Star, expects its pension commitments from 2028 to fall by around £40million while the cost of settling legal claims has reduced by £20.2million. 

Shares rose 13.1 per cent, or 7.8p, to 67.25p.

Another riser was Trustpilot, gaining 8.4 per cent, or 15.3p, to 197.8p, after the review website’s rating was upgraded by JP Morgan.

This post first appeared on Dailymail.co.uk