Tool hire group Ashtead (LON:AHT) racked up record annual profits as the housing and construction recovery in Europe and the US boosted demand for equipment.
Ashtead reported a 35% rise in pre-tax profit to £490mln in the year to April 30, on a 24% increase in rental revenue to £1.8bn, against the same period a year ago.
The group, which owns A-Plant in Europe and Sunbelt in the US, said its markets were up about 7% last year and were forecast to expand by about 8% this year.
Annual underlying earnings per share lifted 34% to 62.6p. The group proposed a final dividend of 12.25p, making 15.25p for the full year, up 33%.
It invested £1bn in its rental fleet and £236mln on bolt-on acquisitions during the year. It expects to again invest around £1bn in capital expenditure in the coming year and will continue to open greenfield sites and make bolt-on acquisitions to further increase market exposure.
Ashtead chief executive Geoff Drabble said the strong performance continued in May.
"Our financial performance speaks for itself with Sunbelt and A-Plant achieving rental revenue growth of 25% and 19% respectively," he said.
"Our markets continue to provide both structural and cyclical opportunity. We are supported by a strong balance sheet. Therefore the board looks forward to the medium term with confidence."
Shares in Ashtead fell 9p to 1,118p in early trading in London. Sanlam Securities said the results were good, but noted that a “drag effect” from new openings and acquisitions held back Sunbelt's margin.