Ashtead Group PLC (LSE:AHT) said its profit for fiscal 2022 and fourth quarter rose as it raised its dividend.
Pretax profit for the fourth quarter 2022 was US$386mln compared to US$306mln last year, while pretax profit for fiscal 2022 grew 35% to US$1.66bn.
The London-listed equipment rental group's revenue increased 19% in the full year as well as in the fourth quarter, while rental revenue increased 24% in the fourth quarter and 22% in the full year.
The company is reporting its earnings in dollars for the first time this year and reported audited results for the year and unaudited results for the fourth quarter ended April 30, 2022.
Rental revenue for the fourth quarter came in at US$1.87bn, up from US$1.52bn, driven by "record performance" across all geographies, while rental revenue for fiscal 2022 grew 22% to US$7.23bn.
EPS for the fourth quarter jumped 32% to 66.5c, and 37% for the full year to 280.9c.
EBITDA grew 18% to US$900mln for the fourth quarter and 18% for the fiscal to US$3.60bn.
The board has proposed a final dividend of 67.5c, bring the full year payout to 80.0c compared to 2021's 58.0c.
"We performed strongly across all geographies with rental revenue up 22% at constant currency (23% when compared with 2019/20)," said Brendan Horgan, chief executive.
"We are well positioned to navigate the challenges and capitalise on the opportunities arising from the market circumstances we face, including supply chain constraints, inflation, labour scarcity and economic uncertainty, all factors which we believe to be drivers of ongoing structural change."
The stock was down 0.39% at 3,789.00p in London.
A combined total of 123 locations in North America were added during the year through investments of US$2.4bn across existing locations and greenfields and US$1.3bn through bolt-on acquisitions.
Following the depressed levels of Covid in 2020-21, the return on investment returned to pre-pandemic levels said the company.
The US return on investment for the year ended April 30, 2022 was 25% compared to 20% in 2021, while in the UK, reflecting increased volumes supporting the Department of Health, the return on investment was 14% compared to 10% in 2021.