Blow to UK as equipment hire giant Ashtead heads for US

Equipment hire giant Ashtead plans to move its primary stock market listing to the US in a fresh blow to the London Stock Exchange.

It said the US was a "natural long term listing venue" because most of its profit was in North America, along with its bosses, headquarters and the majority of its employees.

Ashtead is the latest of several big companies in recent years to delist from the London Stock Exchange, which denied it was in crisis in May.

Ashtead said it would discuss its proposed move with shareholders before putting it to a vote.

The firm aims to move its primary listing to the US in the next 12 to 18 months, but it will keep a UK listing as an international company.

The company, which hires out construction equipment, has more than 25,000 employees.

Ashtead said annual profits would be lower than expected due to "local commercial construction market dynamics in the US", which is set to affect rental sales growth.

Firms worth hundreds of billions of pounds have been quitting the London Stock Exchange for the US over the past few years, prompting concerns over how attractive the UK for investment.

These include Cambridge-based microchip giant ARM Holdings, which now sells its shares in New York, and Paddy Power's owner Flutter.