# Ashtead Group Plc Final Results

- Link: https://www.directorstalkinterviews.com/ashtead-group-plc-final-results/412785316
- Published: 2019-06-18T07:29:56+01:00
- Author: Amilia Stone

**[Ashtead Group plc](https://www.directorstalkinterviews.com/ftse-company/ashtead-group/aht.l)**(
LON:AHT) audited results for the year and unaudited results for the fourth quarter
ended 30 April 2019

|  |  | **Fourth quarter** |  |  | **Year** |  | 
|  |  |  |  |  |  |  | 
|  | 2019 | 2018 | Growth^(1) | 2019 | 2018 | Growth^(1) | 
|  | £m | £m | % | £m | £m | % | 
|  |  |  |  |  |  |  | 
| **Underlying results**^(**2, 3**) |  |  |  |  |  |  | 
| Rental revenue | 1,014.40 | 798.7 | 19% | 4,138.00 | 3,418.20 | 18% | 
| EBITDA | 490.4 | 390.6 | 17% | 2,106.60 | 1,733.10 | 19% | 
| Profit before taxation | 222.5 | 185.3 | 11% | 1,110.20 | 927.3 | 17% | 
| Earnings per share | 35.0p | 25.1p | 29% | 174.2p | 127.5p | 33% | 
|  |  |  |  |  |  |  | 
| **Statutory results** |  |  |  |  |  |  | 
| Revenue | 1,105.80 | 890.8 | 17% | 4,499.60 | 3,706.00 | 19% | 
| Profit before taxation | 208.6 | 174.7 | 10% | 1,059.50 | 862.1 | 20% | 
| Profit after taxation^(4) | 154.5 | 99.9 | 34% | 796.9 | 968.8 | -20% | 
| Earnings per share^(4) | 32.8p | 20.6p | 40% | 166.1p | 195.3p | -17% |

**Full year highlights**

·          Revenue up 19%^(1); rental revenue up 18%^(1)

·          Pre-tax profit^(2) of £1,110m (2018: £927m)

·          Earnings per share^(2) up 33%^(1) to 174.2p (2018: 127.5p)

·          Post-tax profit^(4) of £797m (2018: £969m)

·          £1.6bn of capital invested in the business (2018: £1.2bn)

·          £622m spent on bolt-on acquisitions (2018: £392m)

·          Net debt to EBITDA leverage^(1) of 1.8 times (2018: 1.6 times)

·          Proposed final dividend of 33.5p, making 40.0p for the full year, up 
21% (2018: 33.0p)

_1 Calculated at constant exchange rates applying current period exchange rates._

_2 Underlying results are stated before exceptional items and intangible amortisation._

_3 Throughout this announcement we refer to a number of alternative performance 
measures which are defined in the Glossary on page 39._

_4 Prior year profit after tax and earnings per share figures include a one-off 
benefit from the US Tax Cuts and Jobs Act of 2017._

> **Ashtead’s chief executive, Brendan Horgan, commented**:
> “The Group delivered a strong quarter with good performance across the business.
> As a result, Group rental revenue increased 18% for the year and underlying pre-
> tax profit increased 17% to £1,110m, both at constant exchange rates.
> We continue to experience strong end markets in North America and are executing
> well on our strategy of organic growth supplemented by targeted bolt-on acquisitions.
> We invested £1.6bn in capital and a further £622m on bolt-on acquisitions in the
> period, which has added 146 locations across the Group.  This investment reflects
> the structural growth opportunity that we continue to see in the business as we
> broaden our product offering, geographic reach and end markets, thus increasing
> market share and diversifying our business.
> We remain focused on responsible growth.  Our increasing scale and strong margins
> are delivering good earnings growth and significant free cash flow generation.
> This provides significant operational and financial flexibility, enabling us to
> invest in the long-term structural growth opportunity and enhance returns to shareholders,
> while maintaining leverage within our target range of 1.5 to 2.0 times net debt
> to EBITDA.  We have spent £675m under our share buyback programme announced in
> December 2017, which has now concluded, and expect to spend a minimum of £500m
> on share buybacks in 2019/20.
> Our business continues to perform well in supportive end markets.  Looking forward,
> we anticipate a similar level of capital expenditure in 2019/20, consistent with
> our strategic plan.  So, with our business performing well and a strong balance
> sheet to support our plans, the Board continues to look to the medium term with
> confidence.”

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