Proactiveinvestors United Kingdom Ashtead Group https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Ashtead Group RSS feed en Mon, 24 Jun 2019 12:20:43 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[RNS press release - ASHTEAD GROUP PLC - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/PRNRNS_201906211124PR_NEWS_UKDISCLO_0088/ Fri, 21 Jun 2019 16:24:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/PRNRNS_201906211124PR_NEWS_UKDISCLO_0088/ <![CDATA[RNS press release - Purchase of Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190618080002_14114638/ Tue, 18 Jun 2019 08:00:02 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190618080002_14114638/ <![CDATA[News - Ashtead hikes dividend as strong US revenue lifts profits ]]> https://www.proactiveinvestors.co.uk/companies/news/222296/ashtead-hikes-dividend-as-strong-us-revenue-lifts-profits-222296.html Equipment rental firm Ashtead Group PLC (LON:AHT) hiked its full-year dividend by 21% as growth in US revenue led profits higher.

Underlying pre-tax profit rose 17% to £1.1bn and total rental revenue gained 18% to £4.1bn in the year to the end of April 2019, supported by an increase in the fleet of equipment.

READ: Ashtead Group reveals revenue and profit growth but spending is at top end

The group’s involvement in the clean-up efforts following hurricanes Florence and Michael in the US contributed estimated incremental rental revenue of US$30-35mln but this was much less than the previous year’s US$100mln.

The US Sunbelt business was the key driver of growth with rental revenue rising 22% to £3.5bn.

Rental revenue from the A-Plant arm in the UK edged up 2.7% to £416mln while the Sunbelt Canada division delivered a 54% increase in rental revenue to £167mln. 

The earnings (EBITDA) margin rose to 44.3% from 43.8%, driven by an improvement in Canada.

Capital expenditure in 2020 to be in line with prior year

Capital expenditure for the year amounted to £1.6bn gross or £1.4bn net of disposal proceeds and Ashtead expects a similar level of spending in the 2020 fiscal year.

During the period, the company spent £622mln on bolt-on acquisitions, compared to £392mln last year, adding 146 locations across the group.  

“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,” chief executive Brendan Horgan said.

He added: “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.”

Share buyback plans confirmed 

The company proposed a final dividend of 33.5p, taking the total payout for the year to 40p, up 21% on last year.

Ashtead confirmed plans for a new share buyback programme of at least £500mln in 2020, having spent £675mln on share buybacks since December 2017.

“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,” CEO Horgan said.

In morning trading, shares ticked up 0.7% to 1,976p. 

Liberum keeps 'buy' rating 

Liberum maintained a 'buy' rating and target price of 2,390p.

"The market should be relieved that growth has continued without interruption in the fourth quarter, with management expressing confidence in end markets in the US now and into the medium term," it said. 

"The shares still look cheap, having only recovered half of the macro-drive sell-off of late 2018."

 

-- Adds share price and broker comment --

 

 

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Tue, 18 Jun 2019 07:38:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/222296/ashtead-hikes-dividend-as-strong-us-revenue-lifts-profits-222296.html
<![CDATA[RNS press release - Final Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190618070010_14114107/ Tue, 18 Jun 2019 07:00:10 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190618070010_14114107/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190617172243_14113912/ Mon, 17 Jun 2019 17:22:43 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190617172243_14113912/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190614173604_14112235/ Fri, 14 Jun 2019 17:36:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190614173604_14112235/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190613175456_14110523/ Thu, 13 Jun 2019 17:54:56 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190613175456_14110523/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190612173142_14108833/ Wed, 12 Jun 2019 17:31:42 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190612173142_14108833/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190611172758_14107158/ Tue, 11 Jun 2019 17:27:58 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190611172758_14107158/ <![CDATA[News - Ashtead could be the next company sunk by record US rainfall ]]> https://www.proactiveinvestors.co.uk/companies/news/221901/ashtead-could-be-the-next-company-sunk-by-record-us-rainfall-221901.html While the UK’s ‘beast from the east’ cold snap battered the bottom lines of several firms in the first part of last year, this time it could be torrential US rainfall that leaves the figures of many companies looking soggy.

Since the start of 2019, areas of the US have been enduring multiple months of flash flooding as torrential rainfall coupled with snowmelt in some states have engulfed large portions of the Midwest and the South.

READ: Ted Baker expects profits to fall as much by as 20% after difficult trading

The episodic warming of the tropical Pacific waters, known as El Niño, is also causing a higher frequency of storms and more intense rainfall, with the ongoing effects of climate change adding to their severity.

These conditions have combined to make the last 12 months the wettest for the continental US since records began 125 years ago, according to data from the National Oceanic and Atmospheric Administration (NOAA), with the total at the end of May amounting to 37.68 inches of rain (96cm), beating the previous 12-month record of 36.2 inches (91.9cm) set in April.

All that rain, much like the UK’s cold spell last year, has made trading in the first quarter of 2019 tricky for companies that have large US businesses and rely on their customers either going outside to buy products or starting projects that require outdoor working.

For example, clothing retailer Ted Baker PLC (LON:TED) blamed the US downpours in part for its lacklustre performance in the year to date as it issued a warning on Tuesday forecasting that its full-year profits could fall by as much as 20%.

Meanwhile, blue-chip plumbing firm Ferguson Plc (LON:FERG) saw its organic sales growth in the US slow to 3.3% in the first three months of 2019, its third quarter, from 10% in its first half.

While the company’s management did not blame the rain, analysts at Liberum on Monday did note the “exceptional” rainfall in a note on the results.

The broker added that for the three months to April the US got around 20% more rain than usual, with the wet weather reducing the opportunity for construction groups to start building projects, particularly those involving groundwork.

READ: Somero underwater as record US rainfall causes earnings warning

The damp conditions also caused ructions for AIM-listed levelling machinery specialist Somero Enterprises Inc (LON:SOM), which was forced to issue a profit warning last week after the rainfall pushed trading in the US, its largest market, below management expectations.

While the firm said the weather wasn’t expected to be as dismal for the rest of the year, the deluge meant it would be unable to make up the shortfall in the remaining part of the year.

Ashtead next for a dousing?

The rain-related misery, particularly from Somero, provides a somewhat stormy read-across for FTSE 100 construction equipment renter Ashtead Group PLC (LON:AHT), which derives around 85% of its sales and 90% of profits from its American business, Sunbelt.

The company had been on a strong run in the first three quarters of its last financial year, which ended on 31 January, although it is set to report its final results for the year ended 30 April next Tuesday, which will include most of the record rainy period.

While the company reported a 23% rise in pre-tax profit for the first nine months of the year alongside a 19% jump in revenues, investors may be worried that the downpour could have stalled momentum in its final months.

“I suspect Ashtead will see slower growth”, says Charlie Campbell, an analyst at Liberum.

However, the reduced growth from the blue-chip firm won’t just be down to the heavy rainfall but rather a more general slowdown in US construction activity over the start of the year as a result of higher interest and mortgage rates at the end of 2018, which tend to be a brake on the sector.

While this may cause Ashtead’s numbers to slip for the first part of 2019, Campbell adds that the US markets are currently “upbeat” about the outlook for the country's construction industry, which could provide more of a boost once the literal and figurative grey skies clear.

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Tue, 11 Jun 2019 15:36:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/221901/ashtead-could-be-the-next-company-sunk-by-record-us-rainfall-221901.html
<![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190610174027_14105522/ Mon, 10 Jun 2019 17:40:27 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190610174027_14105522/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190607172741_14103831/ Fri, 07 Jun 2019 17:27:41 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190607172741_14103831/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190606174505_14102174/ Thu, 06 Jun 2019 17:45:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190606174505_14102174/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190605173233_14100290/ Wed, 05 Jun 2019 17:32:33 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190605173233_14100290/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190604172818_14098537/ Tue, 04 Jun 2019 17:28:18 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190604172818_14098537/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190603175107_14096884/ Mon, 03 Jun 2019 17:51:07 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190603175107_14096884/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190531175334_14094937/ Fri, 31 May 2019 17:53:34 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190531175334_14094937/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190530174944_14093079/ Thu, 30 May 2019 17:49:44 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190530174944_14093079/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190529174740_14091444/ Wed, 29 May 2019 17:47:40 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190529174740_14091444/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190528174119_14089767/ Tue, 28 May 2019 17:41:19 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190528174119_14089767/ <![CDATA[RNS press release - ASHTEAD GROUP PLC - Notice of Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/PRNRNS_201905280438PR_NEWS_UKDISCLO_0042/ Tue, 28 May 2019 09:38:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/PRNRNS_201905280438PR_NEWS_UKDISCLO_0042/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190524171316_14087561/ Fri, 24 May 2019 17:13:16 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190524171316_14087561/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190523172645_14085872/ Thu, 23 May 2019 17:26:45 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190523172645_14085872/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190522180536_14084200/ Wed, 22 May 2019 18:05:36 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190522180536_14084200/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190521171220_14082473/ Tue, 21 May 2019 17:12:20 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190521171220_14082473/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190520175356_14080766/ Mon, 20 May 2019 17:53:56 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190520175356_14080766/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190517171638_14079117/ Fri, 17 May 2019 17:16:38 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190517171638_14079117/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190516173807_14077478/ Thu, 16 May 2019 17:38:07 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190516173807_14077478/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190515174412_14075622/ Wed, 15 May 2019 17:44:12 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190515174412_14075622/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190514172112_14073897/ Tue, 14 May 2019 17:21:12 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190514172112_14073897/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190513171446_14072184/ Mon, 13 May 2019 17:14:46 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190513171446_14072184/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190510175803_14070515/ Fri, 10 May 2019 17:58:03 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190510175803_14070515/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190509173629_14068850/ Thu, 09 May 2019 17:36:29 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190509173629_14068850/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190508171908_14067139/ Wed, 08 May 2019 17:19:08 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190508171908_14067139/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190507175814_14065482/ Tue, 07 May 2019 17:58:14 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190507175814_14065482/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190503173732_14063272/ Fri, 03 May 2019 17:37:32 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190503173732_14063272/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190502174159_14061578/ Thu, 02 May 2019 17:41:59 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190502174159_14061578/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190501174031_14060053/ Wed, 01 May 2019 17:40:31 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190501174031_14060053/ <![CDATA[RNS press release - Directorate Changes ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190501070013_14058438/ Wed, 01 May 2019 07:00:13 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190501070013_14058438/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190430175233_14058146/ Tue, 30 Apr 2019 17:52:33 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190430175233_14058146/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190429173733_14056119/ Mon, 29 Apr 2019 17:37:33 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190429173733_14056119/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190426171712_14054320/ Fri, 26 Apr 2019 17:17:12 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190426171712_14054320/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190425172904_14052561/ Thu, 25 Apr 2019 17:29:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190425172904_14052561/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190424175936_14050819/ Wed, 24 Apr 2019 17:59:36 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190424175936_14050819/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190423173754_14049048/ Tue, 23 Apr 2019 17:37:54 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190423173754_14049048/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190418174855_14047141/ Thu, 18 Apr 2019 17:48:55 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190418174855_14047141/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190417180551_14045348/ Wed, 17 Apr 2019 18:05:51 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190417180551_14045348/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190416173359_14043646/ Tue, 16 Apr 2019 17:33:59 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190416173359_14043646/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190415174627_14041890/ Mon, 15 Apr 2019 17:46:27 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190415174627_14041890/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190412173625_14040115/ Fri, 12 Apr 2019 17:36:25 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3280/LSE20190412173625_14040115/