Ashtead chief executive to step down next May, replaced by chief executive of US arm

Industrial equipment rental company Ashtead’s shares were up 5.7 per cent this morning as it announced chief executive Geoff Drabble is to step down in May after nearly 12 years in charge.

Chief operating officer Brendan Horgan, who is also chief executive of the group’s North American business Sunbelt Rentals, will succeed Drabble on 1 May.

Horgan oversaw Sunbelt Rentals accounting for 87 per cent of the group’s revenue in the last financial year, and said he was honoured to take the helm.

Drabble, described by group chair Paul Walker as “an inspirational leader”, will remain at the company until his retirement at the end of November next year to oversee a smooth transition, Ashtead said.

Walker said Drabble had “transformed Ashtead into one of the biggest and most successful rental companies in the world and importantly has delivered significant returns for our shareholders.”

He added successor Horgan had played a key role in delivering “many years of exceptional results” in North America. “I look forward to continuing to work with him on successfully delivering the group's strategy."

Commenting on Drabble’s departure, alongside that of Paul Polman at Unilever and Mark Wilson at Aviva, investment director at AJ Bell Russ Mould, said one could argue an elite group was “getting out at the top, just as large parts of the global economy are starting to look fragile”.

Drabble said: “It has been a privilege to work with the many talented people that make up the Ashtead team. I am grateful to have enjoyed their support in building a world class rental business that has enormous potential to prosper further.

“I look forward to continuing to work closely with Brendan over the coming months to ensure a smooth handover and I am confident that he will lead the Group to even greater success in the future.”