Ashtead delivers record FY performance

Equipment rental company Ashtead said on Tuesday that it had delivered a record full-year, with both revenue and profits up following a solid fourth-quarter showing.

Ashtead said full-year revenues were up 19% at $7.96bn, with annual rental revenues 24% stronger at $7.23bn. Underlying earnings were 18% higher over the twelve months ended 30 April at $3.60bn, while operating profits were up 30% at $1.94bn, and adjusted pre-tax profits rose 38% to $1.82bn.

The FTSE 100-listed group, which spent $1.3bn on 25 bolt-on acquisitions, also proposed a final dividend of 67.5 cents, taking its full-year dividend payment to 80.0 cents.

In the fourth quarter, revenues rose 19% to $2.07bn, EBITDA grew 18% to $900.0m, operating profits rose 21% to $445.0m and adjusted pre-tax profits increased 28% to $418.0m.

Ashtead also noted that the new financial year had "started well" and that it was "well positioned" to navigate the challenges and capitalise on the opportunities arising from current market circumstances - including supply chain constraints, inflation, labour scarcity, and economic uncertainty.

Chief executive Brendan Horgan said: "I am delighted to be able to report a year of record performance for the group. We performed strongly across all geographies with rental revenue up 22% at constant currency (23% when compared with 2019/20).

"This market outperformance across the business is only possible through the dedication of our team members who deliver for all our stakeholders every day, while ensuring our leading value of safety remains at the forefront of all we do."

Reporting by Iain Gilbert at Sharecast.com