Ashtead forks out as it looks forward to lift from TrumpComments Off on Ashtead forks out as it looks forward to lift from Trump
POWER tools giant Ashtead upped the budget for shelling out on new gear as markets bet on an infrastructure spending spree by Donald Trump.
Positive signs in construction, plus encouraging mood music from Washington policymakers, prompted US-focused Ashtead to lift annual spending budget to between £1 billion-£1.2 billion from £800 million-£1 billion.
Most will be spent buying new equipment like forklifts and diggers at its huge Sunbelt business to rent out to US construction workers.
The company, which makes most revenues in the USA and powers UK events like Glastonbury, has seen shares rise 24% since Trump’s win.
It said half-year revenues at constant currency rates were up 13% and pre-tax profits were 9% higher.
Heating firm Wolseley, which makes two thirds of revenues in the US, also hopes Trump’s win could make up for “subdued” markets at home. Chief executive John Martin added its waterworks business could be a potential beneficiary.