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(Alliance News) - Ashtead Group PLC said Tuesday it will resume its share buyback programme in May, as it guided for full-year results to be slightly ahead of its previous expectations.
The London-based equipment rental company with large operations in the US said the business has performed well in the fourth quarter of its financial year, which ends on April 30.
As a result of the strong trading and cash flow, Ashtead said it expects to be at the lower end of its target leverage range of 1.5 to 2.0 times at the end of April, freeing up cash for share buy backs.
The company said it expects to buy back up to GBP1 billion worth of shares over the next two financial years, subject to shareholder approval. It will start the purchases at a rate of GBP75 million per quarter, adjusting this rate based on the needs of the business.
Ashtead noted it had resumed opening new rental sites at the end of its financial first quarter and began to make bolt-on acquisitions again in February.
"Global events over the last 12 months have demonstrated the benefits of our long-term strategy to broaden and diversify our end markets and strengthen our balance sheet," Chief Executive Officer Brendan Horgan said. "The group has performed exceptionally well in all our end markets and we emerge from the pandemic in a position of strength."
Ashtead shares were up 1.2% at 4,654.00 pence in London on Tuesday. They are up 35% so far in 2021.
By Tom Waite; thomaslwaite@alliancenews.com
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