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Fri January 28 2022

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Sunbelt’s covid revenues top £300m

7 Dec 21 The Department of Health is paying plant and equipment hire company Sunbelt £20m a month for Covid-related services.

Sunbelt is supporting approximately 500 covid testing sites
Sunbelt is supporting approximately 500 covid testing sites

Sunbelt UK, formerly A-Plant, has been paid more than £300m to date to supply temporary accommodation, fencing, lighting, generators and related equipment for Covid testing centres.

Sunbelt is supporting approximately 500 testing sites at the moment, which its expects to continue through the winter, boosting revenues by £20m a month. It is anticipating this particular gravy train to grind to a halting the spring of 2022.

As previously reported, Sunbelt was paid £184m for Covid response work during the year to 30th April 2021, of which £74m was made in the fourth quarter (February-April) when the vaccination programme was ramping up.

In the six months between 1st May and 31st October it was paid a further £118m –  accounting for 32% of half-year revenues in the UK.

Overall, Sunbelt UK generated revenue of £368.4m (2020: £272.6m) in the six months to 31st October 2021. Operating profit more than doubled to £53.m (2020: £20.0m).

Parent company Ashtead Group, which now presents its financial results in US dollars as most of its revenue is generated in the US equipment hire industry, made an unaudited pre-tax profit of US$ 890m for the half-year, up 38% on last year’s $646m, on revenue up 18% to $3,884m.

In the UK, reflecting the benefits of increased volumes supporting the Department of Health and operational improvements, return on investment (excluding goodwill and intangible assets) increased to 15% (2020: 4%).

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MPU

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