Ashtead Reported Strong Results, Debenhams Issues Third Profit Warning

Sarla Buch
19 Jun, 2018
New York City

Ashtead profit surged on 21% jump in revenues. Debenhams offered third profit warning in six months. Footasylum tumbled on weak profit and the retailer plans for higher store investment.

[R]4:00 PM Frankfurt – Ashtead profit surged on 21% jump in revenues. Debenhams offered third profit warning in six months. Footasylum tumbled on weak profit and the retailer plans for higher store investment.[/R]

In London trading, FTSE 100 index decreased 28.30 or 0.4% to 7,604.62 and in Frankfurt the DAX index slumped 206.59 or 1.6% to 12,626.41.

In Paris, CAC 40 index declined 80.29 or 1.5% to 5,369.96.

Ashtead Group Plc declined 5.4% to 2,243 pence after the industrial equipment provider reported revenues in the year ending in April soared 21% from a year ago to £3.4 billion.

Net income in the year surged 93.4% to £968.8 million from £501 million in a year ago period and diluted earnings per share advanced to 194.4 pence from 100 pence.

Ashtead said pretax income jumped 21% to £862.1 million from £765.1 million in the same period a year ago.

“All segments performed well and strong balance sheet to support our plans,” said chief executive officer Geoff Drabble.

Altice N.V gained 0.5% to €3.36 on reports that the Netherlands-based telecom services provider may sell its stake in telecom tower business to private equity firm KKR.

Debenhams Plc plunged 10.4% to 17.56 pence after the U.K.-based department store operator issued third profit warning in six months. The retailer estimated pre-tax profit in the year in the range of £35 million to £40 million and operating profit in the range £160 million to £165 million.

‘’These are exceptionally difficult times in UK retail, and our trading performance in this quarter reflects that. We don''t see these conditions changing in the near future,” said chief executive officer Sergio Bucher

Footasylum Plc tumbled 52.3% to 79.89 pence after the U.K.-based sports-wear retailer said revenues in the year ending on February 24 jumped 33% from a year ago to £194.8 million.

Net income in the year declined 96.8% to £0.2 million from £6.2 million in a year ago period and diluted earnings per share plunged to 0.18 pence from 8 pence.

Online revenue soared 41% to £59 million from a year ago period and the retailer warned profit may be hit this year by increased investment in stores.