(Reuters) – British equipment rental firm Ashtead (LON:) is proposing to move its primary listing to New York from London, it said on Tuesday, as it also warned of lower annual profit due to a weak commercial construction market in the United States.
Ashtead, which makes most of its profits in the U.S., said it would discuss the proposal with shareholders and expects the plan to be implemented in the next 12-18 months.
It said it would retain a UK listing in the international companies segment.
Founded in England, Ashtead has been listed in London since December 1986 and made inroads into the United States with the acquisition of Sunbelt Rentals in 1990. In the early 2000s, it made several deals in the U.S. to become one of the largest equipment rental firms there.
The group, which rents out equipment in the construction, repair, entertainment and emergency response segments, is the second-largest equipment rental company in the U.S. with 1,215 stores in all 50 states. The region accounts for 86% share of its revenue.
Ashtead joins a growing list of companies that are moving away from European listings in favour of U.S. markets, where valuations could be higher.
The company said adjusted pre-tax profit fell 2% to $682 million for the three months ended Oct. 31, hurt by higher depreciation costs and lower used-equipment sales amid weakness in commercial construction market in North America.
Its half-year pre-tax profit fell 4% to $1.26 billion, slightly below a company-compiled analysts’ consensus estimate of $1.29 billion.
Ashtead, which trades under the brand name Sunbelt Rentals, also said it would start a share buyback programme of up to $1.5 billion over the next 18 months.
