MARKET WATCH
Snakes and ladders
EHN’s financial analyst, Nick Spoliar of WH Ireland, updates the latest news from the City and from the wider business environment concerning our industry.
After a tumultuous year, Kier acquired a new Chief Executive on 15 April - Andrew Davies, who will drive change following a Strategic Review which he will lead. The backdrop is inevitably subdued, with quarterly economic growth in the UK of around 0.2% and weak Purchasing Managers’ PMIs.
That said, construction sector data in early April was positive, with, according to the Construction Products Association, as many as half of light manufacturers expecting growth.
Interestingly, from a rental perspective, this was accompanied by heavy construction firms reporting a slowing in investment in plant. It’s an ill wind...
Volatility
In an unstable equilibrium, but with volatility bets off, what price the next spending round, setting aside the more egregious trophy projects? Better than expected borrowing figures announced in March - but the Treasury is clearly treading water, and it would be unwise to bet the farm on the looked-for boost from infrastructure spending at present.
The rental sector has been lively as ever. Geoff Drabble stood down as CEO of Ashtead on a high in March, with Q1 profits up 17%. Speedy Hire, which published a positive update on 20 March, also announced the acquisition of Lifterz, bringing a further 1,300 access platforms into the group.
Geoff Drabble leaves Ashtead with the business reporting Q1 profits up 17%.
To end on a cheerful note, a new report has said that the temporary power market is set to grow by 11.5% CAGR globally over the next seven years.
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HSS on 4 April highlighted improved margins, profits and gearing. Lastly, Vp showed that the Brandon Hire integration is going well, but also, shortly afterwards, was revealed to be under investigation by the CMA (Competition and Markets Authority). Snakes and ladders…
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