Shares in Ashtead spiked 12% on Tuesday morning as the construction equipment rental group announced plans to maintain its dividend to shareholders.
Despite being hit by the Coronavirus pandemic and profits for the previous quarter being halved, the group said results proved a “resilient” performance at a time when construction activity was halted.
Pre-tax profit in the three months to 30 April fell by 52% to £98mn. In the full year to 30 April, pre-tax profit was down 7% to £983mn.
Ashstead has said that shareholders will receive the proposed final dividend of 33.5p that was agreed on a year ago. The total payout for the full year is 40.65p, up 1.6%.
Brendan Horgan, the groups chief executive, said in a statement: “Looking forward, we believe that the impact of the COVID-19 pandemic will continue to give rise to market uncertainties over the coming months.”
“However, with strong market positions in all our markets, supported by good quality fleets and a strong financial position, we believe that we are well-positioned to respond to this market uncertainty and continue to support our customers and team members.”
Head of markets at Interactive Investor, Richard Hunter, has said that “Ashtead has so far seen off most of the pandemic challenges with aplomb.”
“Given the company’s exposure to the US in particular, the fragility of the construction market is of some concern not only in the present but potentially further out as the speed and the breadth of easing restrictions come through at an uneven pace.”
Shares in the group (LON: AHT) are trading 9.43% higher at 2,645.00 (1203GMT).