Last checked at 
(Sharecast News) - Ashtead said it would have positive free cash flow under all downside scenarios during the Covid-19 crisis despite the virus having an impact on its business.
The industrial equipment rental company said it had modelled various outcomes for the coming year with business much lower than so far in 2020.
"Under all these scenarios the group remains free cash flow positive throughout the next financial year" and well above a minimum available liquidity of $460m under a covenant threshold.
Ashtead said it expected underlying pretax profit for the year ending 30 April to be about £1.05bn, up from £947m a year earlier.
The industrial equipment rental company said it had modelled various outcomes for the coming year with business much lower than so far in 2020.
"Under all these scenarios the group remains free cash flow positive throughout the next financial year" and well above a minimum available liquidity of $460m under a covenant threshold.
Ashtead said it expected underlying pretax profit for the year ending 30 April to be about £1.05bn, down from £1.1bn a year earlier.
US rental-only revenue at Ashtead's US business fell 15% in April from a year earlier after a 2% increase in March. Since 10 April the level of US fleet on rent has stabilised and improved slightly and a similar trend happened in the UK and Canada.
The FTSE 100 company said it had not made any staff redundant during the crisis and did not intend to take support from the UK government's job retention scheme.
Ashtead did not refer to its dividend amid a series of large companies canceling their payouts during the crisis. The company cancelled share buybacks in early March and reduced capital spending and acquisition activity.
Chief Executive Brendan Horgan said: "I am certain the swift actions we took during these unprecedented times and the strength of our balance sheet will serve the group well. These factors, when combined with the diversity of our products and end markets, contribute to the strength of our long-term business model and put the board in a position of confidence to look to the coming financial year as one of strong cash generation and strengthening our market position."
Ashtead said it had accessed an extra $500m through its senior secured credit facility for a year, increasing the facility to £4.6bn. Availability is about $2.1bn.
29 Apr 2024 12:29
IN BRIEF: Ashtead Group eyes results in line with market expectations
Ashtead Group PLC - London-based provider of equipment hire, makes by far the most of its money in the US via its Sunbelt arm - Expects annual results for the financial year ending Tuesday to be in line with market expectations. The company starts a two-day event for investors and analysts in Atlanta on Monday where team members gather to launch the next phase of its 'Sunbelt 4.0' strategy. In March, Ashtead Group said it expected its rental revenue growth for financial 2024 to be at the low end of its 11% to 13% guidance range, with rental revenue growth expected in the same range for the US and Canada. For the UK, it guided 6% to 9% rental revenue growth.
Read more