Ashtead Group PLC (LSE:AHT) confirmed plans to relist on the New York Stock Exchange in March, as it reported a drop in first-quarter profits compared to last year but raised its cash flow guidance.
Revenue came in at $2.8 billion for the three months to 31 July, up 2% year-on-year, with rental revenue also increasing 2% to $2.6 billion.
Operating profit fell 7% to $642 million, while adjusted profit before tax slipped 4% to $552 million. Adjusted earnings per share were 95.3¢ compared with 97.4¢ a year earlier.
Free cash flow rose strongly to $514 million from $161 million last year, supported by strong margins and disciplined capital deployment.
The company invested $532 million in the business and completed $330 million of share buybacks, bringing the total to around $675 million under the current programme.
Chief executive Brendan Horgan said rental revenue rose 2.4% as mega project activity gained momentum and noted “positive leading indicators for local non-residential construction activity.”
Ashtead reaffirmed its revenue and capex guidance for the year and raised its free cash flow guidance.