The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Andrew J. Wilson - JP Morgan Chase & Co, Research Division - Analyst
: I'd just like to ask about the bolt-ons. It seems obviously you made good progress in terms of the Q1 and the level you managed to do in the U.S.
and clearly, King is a big component to that. But the guidance for the full year is kind of -- is being retained at sort of 2% to 3%. If I just annualize
what you've already acquired, it sounds like that's a fairly conservative comment. So I'm just trying to sort of square that with your comment,
Brendan, on just the pipeline continuing to look very good. I mean that feels to me that it's probably a fairly conservative expectation for the full
year on bolt-ons. Is that a fair comment?
Question: Andrew J. Wilson - JP Morgan Chase & Co, Research Division - Analyst
: That's fair. If I can just follow up with a couple of other quick ones. Just on the rate environment, just interested if there's sort of any commentary
on what you're seeing through the quarter and kind of -- and I guess what you're seeing in Q2 already, just in terms of following up obviously on
some competitors' comments; interested to hear your thoughts.
Question: Andrew J. Wilson - JP Morgan Chase & Co, Research Division - Analyst
: And maybe I can ask a slightly broader question, but I think the point around the free cash flow at A-Plant I think is interesting, in the sense that
how much of that is a useful indicator, in terms of if we were to see a slowing in the Sunbelt business, of how you would expect the cash flow to
develop? Because clearly, we're seeing quite an interesting sort of countercyclical development in the free cash flow. I'm just interested as to
whether there's anything you'd particularly point out, which is different to Sunbelt versus A-Plant and just how the cash might develop in a similar
circumstance?
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SEPTEMBER 10, 2019 / 7:30AM, AHT.L - Q1 2020 Ashtead Group PLC Earnings Call
Question: Steven John Woolf - Numis Securities Limited, Research Division - Analyst
: Just a couple from me. First of all, could you comment on the CapEx you would have spent growth-wise specialty versus general tool?
Secondly, just your thoughts on duration over the past quarter.
And thirdly, just for my benefit, just to sort of outline what the hurricane benefit was last year, just as we can look at, unfortunately, with Dorian
this year.
Question: Rajesh Kumar - HSBC, Research Division - Analyst
: Rajesh Kumar from HSBC. Just looking at the Dodge forecast, obviously, the forecast was for the whole of the U.S. and your business is not evenly
spread across the U.S. So just from the business mix, specialty versus construction, just from the geographic differences, how different would you
expect your performance to be compared to the broader nonresi market forecast? And then on -- yes. Go ahead, please.
Question: Rajesh Kumar - HSBC, Research Division - Analyst
: Yes. The other thing is going in to say an '09 downturn, you were significantly overweight Florida. And you had more nonresidential construction
in the mix. Also, you did cut rates. So what are the differences from that time compared to now that might drive a slightly different performance,
[talking about like you were earlier here]?
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