Ashtead's Proposal to Move Listing to New York

(Reuters) – British equipment rental firm Ashtead (LON:AHT) is proposing to move its primary listing to New York from London, it said on Tuesday. The move comes as the company warned of lower annual profit due to a weak commercial construction market in the United States.

Ashtead, which generates most of its profits in the U.S., will discuss the proposal with shareholders and expects to implement it in the next 12-18 months. The company plans to retain a UK listing in the international companies segment.

Founded in England, Ashtead has been listed in London since December 1986 and entered the United States market by acquiring Sunbelt Rentals in 1990. In the early 2000s, it made several deals in the U.S. to become one of the largest equipment rental firms there.

The firm, which rents equipment in the construction, repair, entertainment, and emergency response segments, is the second-largest equipment rental company in the U.S., with 1,215 stores across all 50 states, accounting for 86% of its revenue.

Ashtead joins a growing number of companies moving away from European listings in favor of U.S. markets, where valuations could be higher.

The company reported that adjusted pre-tax profit fell 2% to $682 million for the three months ended Oct. 31, affected by higher depreciation costs and lower used-equipment sales due to the weak commercial construction market in North America.

Its half-year pre-tax profit fell 4% to $1.26 billion, slightly below an analysts' consensus estimate of $1.29 billion.

Ashtead, operating under the brand Sunbelt Rentals, also announced a share buyback program of up to $1.5 billion over the next 18 months.