Investors' Chronicle
The Companies and Markets Show: Ashtead, Redde Northgate and the stockpicker resurgence
Dec 8, 2023
Join Alex Newman, author and market analyst, alongside Jemma Slingo, who dives into the latest financial figures from Ashtead and Redde Northgate. They discuss Ashtead's challenges amid rising interest rates and the complexities of Redde Northgate's post-merger legacy issues. Newman brings to light why this might be a golden era for stockpickers, exploring the shortcomings of active funds and their potential resurgence. Together, they shed light on the shifting landscape of investment strategies and what it means for future market performance.
29:05
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Quick takeaways
- Ashtead's interim figures showed strong revenue growth despite external challenges, highlighting the resilience of its core US markets.
- The discussion around active fund management emphasizes a potential resurgence as market conditions shift, favoring strategic stock picking over passive strategies.
Deep dives
Ashtead's Resilience Amid Market Challenges
Ashtead, a leading equipment hire company, is facing a period of adjustment as it navigates challenges from higher interest rates and operational disruptions. Despite a slight dip in revenue growth forecasts, interim figures showed a healthy 16% revenue increase and a 12% rise in adjusted operating profits to $799 million. Market responses indicate concerns about the company's future due to external impacts, such as the Hollywood writer's strike and adverse weather conditions affecting demand. Management maintains that these issues are temporary and insists that the core markets, especially in the US, remain robust.
