British industrial group Ashtead aims to star in Hollywood expansion plan

Ashtead Group PLC update

Ashtead, the UK’s best-known group for supplying excavators, generators and lighting to construction sites, is planning a breakthrough in the Hollywood film business.

Brendan Horgan, CEO of the FTSE100 Group, plans to expand Canada’s film equipment rental division to Los Angeles, the United States and the United Kingdom, the world’s largest entertainment markets.

Traded under the name Sunbelt Microsystems and worth £ 27 billion, Ashted has the largest equipment rental business in the UK and the second largest in the United States.

We want to extend William F White International, a Canadian-based film rental division, to take advantage of the pandemic of streaming platforms such as Netflix, which has become a big-money spinner for film production groups.

Ashtead purchased William F White in 2019 for £ 136 million, which rents out special cameras, array rigs and lighting fixtures to film and television production companies to diversify from construction.

After retreating during the first wave of the pandemic, the surge in investment in new shows by streaming services helped William F. White grow its annual revenue.

Canada’s largest domestic movie and television equipment rental business, the company expects to generate $ 200 million this year from $ 120 million (US $ 94 million) at the time of the acquisition.

“From Netflix to Disney to CBS — they’re shooting to satisfy their greedy desire for content. In the UK and the US, they have zero business,” Hogan said. “We plan to expand to the United States and the United Kingdom.”

According to the UK Film Institute, the UK film industry has been booming in recent years, in part due to tax cuts, with production companies spending on high-end television from £ 1.8 billion in 2018-19 to 2020-21. Has increased to 3.5 billion pounds. ..

Amazon Studios announced last month that it would move its production Lord of the Ring Second season of fantasy drama series from New Zealand to England Good OmensThe s will be filmed exclusively in Scotland after the first tough international filming tour.

It also reflects the global spending boom on content, which is expected to record double-digit growth, reaching $ 250 billion in 2021. The numbers for Purely Streamonomics indicate.

Hogan estimates that if the sector wins “a small part of the US market,” it will generate more than $ 250 million in revenue. He added that the opportunity to cross-sell equipment under other businesses such as generators and industrial lighting is important.

Comments were received this week when Ashted raised its full-year earnings forecast, after construction activity recovered significantly and the live event was at a loss from the Covid-19 shutdown. Growth is expected to be 13-16% higher than the previous year’s £ 5bn revenue, ahead of previous estimates of 6-9%.

Supply chain pressures on equipment manufacturers such as Caterpillar and JCB are also benefiting Ashted. Users rely on rentals because equipment prices are pushed up when suppliers, dealers and distributors are out of stock and supply is tight.

Ashted also supplies equipment to areas affected by natural disasters such as the Covid-19 test center and Hurricane Ida, providing lighting, generators and pumps for cleanup after a storm or catastrophe. ..

British industrial group Ashtead aims to star in Hollywood expansion plan

Source link British industrial group Ashtead aims to star in Hollywood expansion plan

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