Ashtead profit jumps 38%, company starts share buybacks
Group rental revenue increased 17%. Group EBITA margins increased to 29% (2015: 27%). Group pre-tax profit was £645m, up 24% at constant exchange rates.
There was £1.2bn of capital invested in the business (2015: £1.1bn). Group RoI was 19% (2015: 19%). Net debt to EBITDA leverage was 1.7 times (2015: 1.8 times).
THe company proposed final dividend of 18.5p, making 22.5p for the full year, up 48% (2015: 15.25p). Ashtead is commencing a share buy-back of up to £200m in 2016/17.
Ashtead CEO, Geoff Drabble, commented: "2015/16 was another very successful year for Ashtead with Group rental revenue increasing 17% and underlying pre-tax profit up 24% to £645m at constant exchange rates.
"We continue to deliver on our well-established strategy of organic growth, supplemented by bolt-on acquisitions. We have broadened both our geographic footprint and the markets we serve and the benefits of this diversification are evident, both in our financial performance and our market share gains.
"Particularly encouraging is the continued improvement in our margins, with Group EBITDA margins now a record 46%." ■