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Ashtead Group Q1 rental revenue increased 16%

Christian Fernsby ▼ | September 10, 2019
Ashtead Group published unaudited results for the first quarter ended 31 July 2019.
Ashtead Group
Ashtead Group   "Our North American end markets remain strong"
Ashtead's Chief Executive, Brendan Horgan, commented: "The Group delivered a strong quarter with rental revenue increasing 16% and underlying pre-tax profit increasing 9%, excluding the impact of IFRS 16, both at constant exchange rates.

Topics: Ashtead Group

"Our North American end markets remain strong and we continue to execute well on our strategy of organic growth supplemented by targeted bolt-on acquisitions.

"We invested £521m in capital and a further £196m on bolt-on acquisitions in the period, which has added 27 locations across the Group.

"This investment reflects the structural growth opportunity that we continue to see in the business as we broaden our product offering, geographic reach and end markets, thus increasing market share and diversifying our business.

"We remain focused on responsible growth.

"Our increasing scale and strong margins are delivering good earnings growth and significant free cash flow generation.

"This provides significant operational and financial flexibility, enabling us to invest in the long-term structural growth opportunity and enhance returns to shareholders, while maintaining leverage within our target range of 1.9 to 2.4 times net debt to EBITDA (1.5 to 2.0 times excluding IFRS 16).

"We spent £125m under our share buyback programme in the quarter, and expect to spend a minimum of £500m on share buybacks in 2019/20.