Ashtead Group has announced that it intends to move its primary listing away from the London Stock Exchange (LSE), opting for New York as a replacement.

The industrial equipment rental firm said the move "is in the best interests of the business and its stakeholders", considering the US market as the "natural long term listing venue for the firm".

It comes as the firm, which is headquartered in London, announced its half-year results, which was published in US dollars.

The group revealed that 98% of Ashtead’s operating profit, which reached $1.48bn (£1.16bn) in the six months to 31 October, derived from North America.

Its overall revenue increased by 2% year-on-year across the same period to $5.7bn (£4.47bn), while its EBITDA jumped by 4% to $2.7bn (£2.12bn).

Looking ahead, Ashtead said it expects its full-year revenue to reach between 3% and 5%, with a drop in full year profit expectations. It stated that it is a "position of strength" and that it looks to capitalise on "ongoing structural growth opportunities" to "enhance returns to shareholders".

Investment director at AJ Bell, Russ Mould, stated: "It was always a question of ‘when’ not ‘if’ Ashtead would move its main stock listing to the US. The bulk of its business is carried out in North America and that’s where its management team are based.

"There have been rumblings for a while that a US primary listing was being considered so that remuneration packages could be aligned with US-listed companies – i.e., justification to pay the top brass big money.

"Ashtead’s decision is another blow to the LSE as the latter battles a shrinking market. However, Ashtead’s impending listing switch was inevitable so in a way it’s better to happen now so the LSE can start the New Year fresh with a sharp focus on rebuilding the UK’s market reputation.

"The listing news has coincided with a profit warning from Ashtead due to weak US local commercial construction markets. Profit warnings from Ashtead aren’t common but the latest one doesn’t imply any reason to panic."

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