industrial hire company Ashtead yesterday reported stronger year-end results, but saw its shares fall 15 to 164p as a result of research downgrades from analysts.
The shares tumbled as analysts cut their profit forecasts for Ashtead's current year. This came in spite of a reported rise in pre-tax profits to #42.8m for the year ended April 30, 1999, compared with #35.5m in the previous year.
Analysts said the downgrades resulted from concerns over low US margins, lower-than-expected hire rates and worries as the company opened more new rental centres than anticipated.
Industry sources said ABN Amro, Ashtead's broker, had cut
its pre-tax profit forecast to #51m from #60m for the current
year ending April 2000, although it retained a ''buy'' rating on the stock.
WestLB Panmure equipment rental analyst Mark Howson said he had also cut his pre-tax profit forecast to #52.1m from #56.4m, and lowered his earnings per share estimate to 13.3p from 14.4p.
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