Trading Statement

Ashtead Group PLC
10 March 2003


Ashtead Group plc 
Trading Statement

The Board of Ashtead Group has been advised by the directors of its USA 
subsidiary, Sunbelt Rentals, that a senior member of its financial staff, 
responsible for the preparation of its accounts, has been suspended. The reason 
for his suspension is that he has admitted to a failure to reconcile properly 
certain balance sheet accounts. The effect is that certain costs of the business 
in the accounts to the year to April 2002 and in the current year appear to have 
been understated. The sums involved are said to be approximately £2.5m 
(approximately £1.5m after tax) in each financial year. The individual concerned 
who is co-operating with the initial investigation denies any personal gain from 
the misstatement and says that no other member of Sunbelt's staff was involved.

An immediate investigation has been launched to satisfy the Board as to the
motive for and the extent and nature of the misstatement. External advisors are 
being appointed to assist the Board in this investigation. The Board is 
presently reviewing whether there is an impact on its banking arrangements. In 
the meantime the Board is keeping its bankers appraised of the position.

Given that the cumulative profit effect of the above misstatement could be £5m 
pre-tax (£3m after tax) based on information currently available and that 
trading  in Sunbelt has not been helped by the general uncertainty surrounding 
the  possible war in Iraq and weather conditions in January and February which 
have  been particularly adverse with record snowfalls in the North East, the 
Board can  no longer anticipate Sunbelt achieving its forecast for the current 
year.

Good progress has been made by the new senior management team at A-Plant, the UK 
division. The benefits of a number of the operational initiatives to control 
costs and refocus operations have started to take effect. As such, although 
trading conditions have if anything become more difficult, we continue to 
anticipate a small increase in A-Plant's profits in the second half compared 
with last year.

In the light of the trading situation, and prior to any restatement of the 
accounts that may be required following conclusion of the accounting 
investigation, profits in the current year are likely to be well below market 
expectations. The Directors have continued to keep a tight rein on capital 
expenditure and to keep the Group's costs under control. As a result, the Group 
remains strongly cash generative producing net free cash flow (after capital 
expenditure and interest charges) in the third quarter. We anticipate further 
net free cash flow will be achieved by year end.

The strategy of the Group remains unchanged. The Group's divisions are all 
leaders in their respective markets. A small improvement in market conditions 
will still have a significant impact on our performance given the inherently 
high levels of operational gearing in the business.

The Board will issue a further statement as soon as the conclusions of the 
investigation are to hand.


For further information contact:

George Burnett         Chief Executive                   01372 362 300 
Ian Robson             Finance Director                  01372 362 300 
Andrew Grant           Tulchan Communications            020 7353 4200



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