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(Alliance News) - Ashtead Group PLC on Tuesday lifted its annual payout, as it posted double-digit revenue and profit growth.
It was a record yearly performance for the London-based but US-focused equipment rental firm, which also outlined an upbeat outlook despite price inflation and supply chain issues.
Revenue for the financial year that ended April 30 rose 19% to USD7.96 billion from USD6.64 billion the year before. Pretax profit jumped 35% to USD1.67 billion from USD1.24 billion.
Adjusted pretax profit of USD1.82 billion, up 38% on the year before, was in-line with analyst consensus of USD1.81 billion.
For the fourth quarter alone, revenue climbed 19% year-on-year to USD2.08 billion from USD1.76 billion. Pretax profit rose 26% to USD386 million from USD306 million a year earlier.
Ashtead proposed a final dividend of 67.50 cents, up 40% from 48.24 cents a year before, taking the total payout for the year to 80.00 cents, up 38% from 58.00 cents.
"I am delighted to be able to report a year of record performance for the group," said Chief Executive Brendan Horgan.
Horgan added: "The new financial year has started well, and the business has clear momentum. We are well positioned to navigate the challenges and capitalise on the opportunities arising from the market circumstances we face, including supply chain constraints, inflation, labour scarcity and economic uncertainty, all factors which we believe to be drivers of ongoing structural change."
Gross capital expenditure for the year amounted to USD2.40 billion. Ashtead expects this figure to rise to between USD3.3 billion and USD3.6 billion for the current year, as it executes its Sunbelt 3.0 strategic plan.
The goal of the plan, unveiled in April 2021, is to see Ashtead add nearly 300 new locations in North America, taking it to 1,234 in 2024. During the recently ended financial year, it added 123 locations in North America.
Ashtead shares were 0.1% lower at 3,797.00 pence each in London on Tuesday afternoon.
By Eric Cunha; ericcunha@alliancenews.com
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