Ashtead Group plc (LON:AHT) has announced its unaudited results for the first quarter ended 31 July 2024.
| First quarter | |||
| 2024 | 2023 | Growth2 | |
| $m | $m | % | |
| Performance1 | |||
| Revenue | 2,754 | 2,696 | 2% |
| Rental revenue | 2,541 | 2,376 | 7% |
| EBITDA | 1,288 | 1,229 | 5% |
| Operating profit | 688 | 703 | -2% |
| Adjusted3 profit before taxation | 573 | 615 | -7% |
| Profit before taxation | 544 | 585 | -7% |
| Adjusted3 earnings per share | 97.4¢ | 107.5¢ | -9% |
| Earnings per share | 92.4¢ | 102.3¢ | -10% |
Highlights
| ● | Group rental revenue up 7%2; revenue up 2%2 |
| ● | US rental revenue up 6%; revenue up 1% |
| ● | Operating profit of $688m (2023: $703m) |
| ● | Adjusted3 profit before taxation of $573m (2023: $615m) |
| ● | Adjusted3 earnings per share of 97.4¢ (2023: 107.5¢) |
| ● | 33 locations added in North America |
| ● | $855m of capital invested in the business (2023: $1,132m) |
| ● | $53m spent on two bolt-on acquisitions (2023: $361m) |
| ● | Net debt to EBITDA leverage2 of 1.7 times (2023: 1.6 times) |
| ● | We expect full year results in line with our previous expectations |
| 1 | Throughout this announcement we refer to a number of alternative performance measures which provide additional useful information. The directors have adopted these to provide additional information on the underlying trends, performance and position of the Group. The alternative performance measures are not defined by IFRS and therefore may not be directly comparable with other companies’ alternative performance measures but are defined and reconciled in the Glossary of Terms on page 28. |
| 2 | Calculated at constant exchange rates applying current period exchange rates. |
| 3 | Adjusted results are stated before amortisation. |
Ashtead Group’s chief executive, Brendan Horgan, commented:
“We launched our Sunbelt 4.0 strategic growth plan in April and the business is focused on executing against our five actionable components: Customer, Growth, Performance, Sustainability and Investment. I want to thank all our team members for the hard work and professionalism they exhibit every day as we deliver on this strategy and our commitment to provide exceptional service to our customers, safely.
The Group is performing well with rental revenue up 7% and revenue up 2% in the first quarter. In North America, the increasing proportion of mega projects and the strength of our Specialty businesses has more than offset the lower activity levels in local commercial construction markets. As expected, lower used equipment sales and a higher increase in depreciation and interest costs, resulted in adjusted profit before taxation of $573m (2023: $615m).
The investments in and expansion of the business over Sunbelt 3.0 and into Sunbelt 4.0 are enabling us to take advantage of the diverse opportunities that we see while maintaining a balance sheet that affords us considerable flexibility and optionality. In the quarter we invested $855 million in capital across existing locations and greenfields and $53m on two bolt-ons, adding a total of 33 new locations in North America.
We are in a position of strength, with the operational flexibility and financial capacity to capitalise on the structural growth opportunities we see for the business. We have started the year well and expect full-year results will be in line with our expectations. The Board looks to the future with confidence.”
Brendan Horgan and Michael Pratt will hold a conference call for equity analysts to discuss the results and outlook at 10am on Tuesday, 3 September 2024. The call will be webcast live via the Company’s website at www.ashtead-group.com and a replay will be available via the website shortly after the call concludes. A copy of this announcement and the slide presentation used for the call are available for download on the Company’s website. The usual conference call for bondholders will begin at 3pm (10am EST).
Analysts and bondholders have already been invited to participate in the analyst and bondholder calls but any eligible person not having received details should contact the Company’s PR advisers, H/Advisors Maitland (Audrey Da Costa) at +44 (0)20 7379 5151.
