Profits at equipment rental firm Ashtead (LON:AHT) rose in the 12 months to April, after the company benefitted from US clean-up efforts after hurricanes in 2017.
Underlying pre-tax profits rose by 21 percent in the year to hit £927.2 million, with rental revenues up by 21 percent to £3.42 billion. Underlying earnings (EBITDA) rose by 19 percent to £1.73 billion, with its strong performance driven by its Sunbelt US, A-Plant and Sunbelt Canada divisions.
On a statutory basis, revenues rose 20 percent at £3.71 billion, with pre-tax profits nearly doubling to £968.8 million.
“Looking forward, we anticipate a similar level of capital expenditure in 2018/19 consistent with our strategic plan. So, with all divisions performing well and a strong balance sheet to support our plans, the Board continues to look to the medium term with confidence,” saud Ashtead’s chief executive, Geoff Drabble.
Ashtead proposed a total dividend for the year of 33 pence, bringing the dividend up 20 percent from 27.5p a year ago.
At the end of last year the group announced a £1 billion share buy-back programme, after benefitting substantially from strong half-year sales driven by the devastation caused by the hurricanes. On Tuesday, Ashtead said it had spent £200 million on buybacks so far.
Ashtead shares are currently trading 7.29 percent down, despite the strong performance, at 2,199.00 (1011GMT).
