Audited results for the year ended 30 April 2006 and unaudited results for the fourth quarter

Continuing strong growth in a record year

Highlights

^* _{Underlying profit before tax and earnings per share are stated before exceptional items and fair value remeasurements related to embedded derivatives in long term debt instruments (see note 4).}

• Sunbelt ’s full year operating profit before exceptionals rises 62.7% to $175.5m (2005: $107.9m)
• A-Plant’s full year operating profit rises 22.0% to £13.9m (2005: £11.3m)
• Final dividend of 1.0p per share proposed making 1.5p (2005: nil) for the full year
• US market demand expected to remain strong
• Pension fund is now fully funded
• Chief executive to retire at the end of 2006; successor announced

Ashtead’s chief executive, George Burnett, commented:

“A record fourth quarter continued the trend established earlier in the year and delivered full year underlying pre-tax profits triple those of 2004/5. All three of our businesses performed well. Each continues to benefit from good market conditions and has made an excellent start to the new year.

In the US , where Sunbelt continues to gain market share, we are encouraged both by the strength of the non-residential construction market which having risen 10% in the 12 months to April 2006 is forecast to grow strongly for at least the next two years and by the ongoing shift from ownership to rental. Revenues from house builders, where the short-term outlook is less certain, accounted for just 6% of Sunbelt ’s revenues last year

The restructuring of A-Plant’s sales force at the start of last year delivered benefits on a rising scale as the year progressed, a trend which has continued into our new financial year.

With this strong, broadly-based momentum, the Board looks forward to reporting further significant progress in the coming year.”

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PRESS RELEASE

Overview

The Group achieved a record performance in the year to April 2006. Revenue increased by 21.8% to £638.0m. The underlying profit for the year before tax of £67.5m was three times last year’s £22.4m, while the pre-tax profit for the year was £81.7m. Underlying basic earnings per share were 12.2p (2005: 2.6p) while basic earnings per share were 14.7p (2005: 5.6p). On a cash tax basis, underlying earnings per share were 17.8p (2005: 6.7p).

The Group now reports its results under International Financial Reporting Standards (IFRS) and comparatives have been restated accordingly (see note 14 to the attached financial information).

Ashtead comprises three distinct divisions: Sunbelt Rentals, the fourth largest equipment rental company in the US; A-Plant, the UK’s third largest equipment rental company; and Ashtead Technology Rentals, a niche business, renting specialist electronic equipment worldwide.

Review of trading for the year to 30 April

^* _{in 2006 before exceptional items}

Reflecting the Group’s operational gearing, the 21.8% revenue increase resulted in a 32.5% increase in EBITDA before exceptional items to £224.7m and an increase of 65.5% in operating profit before exceptional items to £111.1m. Measured at constant exchange rates, to eliminate currency translation effects, revenue grew 17.8%, EBITDA before exceptional items grew 28.0%, operating profit before exceptional items grew 58.6% and underlying profit before tax was still almost three times that of last year. These improvements were reflected in the Group’s margins. EBITDA margins grew from 32.4% to 35.2% and operating margins (before exceptional items) rose from 12.8% to 17.4%.

Sunbelt Rentals

Sunbelt is the fourth largest equipment rental company in the fragmented US market where it continues to increase market share. Sunbelt offers a broad range of both general and specialist equipment, supported by high quality customer service from 209 locations.

In the year to 30 April 2006 revenue grew 23.8% to $818.7m. This was achieved through increased investment in the rental fleet which was on average 11% larger than a year ago and by significant increases in rental rates which were increased approximately 12% in strong market conditions. Average utilisation remained high at 70% (2005: 69%).

Revenue growth was broadly based with all regions and all major product areas trading ahead of last year. Last summer’s hurricanes are estimated to have added around 2% to 2005/6’s revenues. In a strong trading environment where US non-residential construction rose 10.2% in the 12 months to end April, according to figures published by the US Department of Commerce, Sunbelt continued to take market share. Revenues from house builders, where the short-term outlook is less certain, accounted for just 6% of Sunbelt ’s revenues. The shift from ownership to rental continued with the US rental sector again growing faster than its key customer base, non-residential construction, in calendar 2005.

For the full year, Sunbelt ’s operating profit before exceptional items was up 62.7% to $175.5m, representing a margin of 21.4% (2005: 16.3%).

Sunbelt continued to invest to reduce the age of its rental fleet and for growth, spending $257.9m in the year, including the funding of six new greenfield stores. A further sixteen new general equipment rental stores were acquired during the year for a consideration, including costs, of approximately $100m. The acquired stores were all immediately transferred onto Sunbelt’s point of sale systems and staff incentive programmes and began trading as Sunbelt stores from their acquisition closing date. Their financial performance since acquisition has been strongly positive. In August Sunbelt also disposed of twelve specialist scaffold stores on the west coast and in Texas for $24.3m generating an exceptional disposal profit of $5.1m (£2.9m). The new stores continue Sunbelt ’s strategy of clustering stores in major metropolitan markets. Sunbelt also continues to emphasise organic growth with an increase in same store revenues for the year of 19.3%.

In the fourth quarter Sunbelt delivered revenue growth of 27.1% and growth in operating profit before exceptional items of 63.2%.

A-Plant

A-Plant is the UK’s third largest equipment rental company with fleet of more than 95,000 units of non-operated equipment, including power tools, excavators, accommodation units and traffic management systems, available for hire from our locations nationwide.

A-Plant’s revenue for the year was £160.7m compared to £156.3m last year. The successful restructuring of A-Plant’s sales force undertaken in the first half contributed to a significantly improved performance in the second half of the year and a particularly strong fourth quarter in which revenues increased by 8% to £41.8m and operating profit by 47.1% to £3.9m. Rental rates, average fleet size and utilisation for the year were all at similar levels to those of last year. Revenues from A-Plant’s largest 150 customers continued to grow and represented 39% of the year’s total.

Operating expenses were again carefully controlled, increasing by just 3.4% before depreciation. As a result A-Plant’s operating profit for the year grew 22.0% to £13.9m (2005: £11.3m), representing a margin of 8.6% (2005: 7.3%)

The investment A-Plant makes in developing its staff, which is at the heart of its improving performance, was recognised in May when Hire Association Europe (“HAE”) announced that A-Plant had won, amongst competition from rental companies throughout Europe, HAE’s “Excellence in Training” award. At the same time, in recognition of the improvement in A-Plant’s performance and the continuing development of the Group, the HAE also appointed George Burnett its “Hire Person of the Year”

Ashtead Technology

Ashtead Technology rents specialised electronic equipment to the offshore oil and gas sectors and the environmental monitoring and testing industry from 11 locations worldwide.

Ashtead Technology’s performance continued recent trends with revenue for the year up 29.5% to £16.1m (2005: £12.4m) and operating profit up 19.9% to £4.0m (2005: £3.4m). This reflects increased investment by the oil majors which is delivering higher offshore exploration and construction activity as well as continued growth in Ashtead Technology’s onshore environmental business. Investment for future growth included a significantly enlarged onshore sales force and a new profit centre opened in Chicago last November.

Exceptional items and fair value remeasurements of embedded derivatives

In addition to the trading results discussed above, operating profit as reported in the consolidated income statement includes £13.4m of net exceptional profits. These comprise the £11.3m received when Sunbelt settled its long standing litigation with Head & Engquist last November, a £2.9m profit on disposal of Sunbelt ’s 12 scaffold stores less £0.8m of post acquisition integration costs. Included within finance costs is the £4.8m net cost of last summer’s capital reorganisation, mainly relating to the 12% premium payable on the £42m of sterling senior secured notes redeemed early out of the proceeds of the equity placing, and the £5.6m (2005: £9.8m) non-cash fair value remeasurements of embedded derivatives in long term debt.

Taxation

Overall for the year the effective accounting tax rate on the underlying profit was 31% whilst the cash tax rate on the same basis remained minimal. The recent increases in Sunbelt’s profitability together with the Head & Engquist litigation receipt mean, however, that Sunbelt ’s US federal tax losses have now been fully utilised and that consequently the Group’s cash tax rate will rise into double digits next year.

Pensions

Funding of the UK pension plan deficit as announced with the third quarter results was completed at the end of March with the payment of £17.1m, the amount recommended by the actuary, into the fund. As a result the Group’s pension obligations are now fully funded. Funding of the deficit had no significant effect on the Group’s income statement.

Capital expenditure and net debt

Capital expenditure in the year was £220.2m (2005: £138.4m) of which £201.8m was invested in the rental fleet. £64.5m of the fleet expenditure was for growth, principally in Sunbelt , with the remainder spent to replace existing equipment. Disposal proceeds were £50.8m (2005: £37.6m) generating a record profit on disposal of £9.1m (2005: £7.1m).

As indicated in March, capital expenditure for the year to 30 April 2007 is currently expected to total approximately £250m.

Net debt at 30 April 2006 was £493.6m, an increase of £11.3m since 30 April 2005. At constant exchange rates the increase over the year was £2.5m. Net debt to EBITDA leverage reduced from 2.85x a year ago to 2.2x at 30 April 2006. Availability under the asset based loan facility was $283m at 30 April 2006 ($157m at 30 April 2005).

Dividends

The directors intend proposing to shareholders at the Annual General Meeting that a final dividend of 1.0p per share be paid making a total for the year of 1.5p per share (2005: nil). Under IFRS the financial statements now reflect just dividends paid in the year and therefore show only the £2.0m cost of the interim dividend paid in February. The final dividend, if approved by shareholders, will be paid on 28 September 2006 to shareholders on the register on 28 July 2006.

Retirement of George Burnett and appointment of successor

George Burnett, Ashtead’s chief executive has given the Company notice of his wish to retire shortly after he reaches 60 in September 2006. George co-founded Ashtead in 1984 when he and a fellow investor purchased what was then a five branch business in the south-east of England with revenues of £1m. George has been instrumental in all the key steps undertaken by the Company since that time. In recent years, as chief executive, George led the Group successfully through the US economic downturn of 2001/2 and the turbulent times which followed and has overseen the subsequent recovery with profits now at record levels. Consequently George leaves the Group well-positioned for the future having already become the fourth largest construction equipment rental company in the world.

George will be succeeded by Geoff Drabble, currently an executive director of The Laird Group PLC where he is responsible for its Building Products division and a non-executive director of the Company since April 2005. Geoff has extensive experience of managing businesses with operations in both the US and the UK from both his time with Laird and previously with Black & Decker. Geoff emerged as the Nomination Committee’s preferred candidate after an extensive external and internal search and is expected to be available to start full-time in his new role on 2 October 2006. Geoff will then benefit from a handover period working alongside George until his retirement at the end of the year. In his new role the Board expects that Geoff will bring both an understanding and continuity of strategy whilst also providing renewed focus on all aspects of the Group’s operations.

Current trading and outlook

All three of our businesses performed well in the past year. Each continues to benefit from good market conditions and has made an excellent start to the new financial year.

In the US , where Sunbelt continues to gain market share, we are encouraged both by the strength of the non-residential construction market which having risen 10% in the 12 months to April 2006 is forecast to grow strongly for at least the next two years and by the ongoing shift from ownership to rental. Revenues from house builders, where the short-term outlook is less certain, accounted for just 6% of Sunbelt ’s revenues last year.

The restructuring of A-Plant’s sales force at the start of last year delivered benefits on a rising scale as the year progressed, a trend which has continued into our new financial year.

With this strong, broadly-based momentum, the Board looks forward to reporting further significant progress in the coming year.