Ashtead Group PLC (LSE:AHT) reported lower revenue growth than expected and a drop in annual profit due to higher interest payments on its growing debt pile.
The FTSE 100-listed construction equipment group kept schtum on the subject of a mooted potential move of its main listing from London to New York – though directors will be surely quizzed on the subject on the call later.
Group revenue increased 12% to $10.9 billion for 12 months to 30 April, with rental revenue growing 10% – below the bottom of the 11-13% guidance range that it warned about earlier this year.
Top-line growth slowed to 7% in the fourth quarter from 9% in the third, though rental revenue growth improved to 9% from 7% in the third quarter.
Ashtead invested $4.3 billion of capital across existing locations and new greenfield sites and spent $0.9 billion on 26 bolt-on acquisitions.
Adjusted profit fell 2% to $2.2 billion as interest payments increased, reflecting the higher interest rates environment and increased average debt levels.
Free cash flow more than halved to $216 million after the increased capital expenditure, investment in bolt-on deals and shareholder returns, and net debt swelled to $10.7 billion by the April year-end, up from $8.96 billion a year earlier.
Chief executive Brendan Horgan said the "operating performance continues to be strong with record revenue and operating profit".
"Our end markets in North America remain robust with healthy demand, supported in the US by the increasing proportion of mega projects and the ongoing impact of the legislative acts."
A final dividend of 89.25 cents per share was recommended, making a total of 105 cents for the year, up from 100 cents last time.