Ashtead Group rental revenue increased 12%Staff Writer | September 7, 2016
Equipment rental company Ashtead Group delivered a strong quarter with rental revenue increasing 12% and underlying pre-tax profit of £184m.
Ashtead Group Underlying pre-tax profit of £184 million
#In the quarter, the reported results were positively impacted by weaker sterling (£17m) but this was broadly balanced by the impact of lower gains on fleet disposals (£12m) as we reduced our replacement capital expenditure.
"The continued improvement in our margins is particularly encouraging – with Group EBITDA now a record 48% (2016: 46%).
#These healthy margins and our strong balance sheet provide flexibility to continue to invest in our long-term structural growth opportunity and enhance returns to shareholders.
"We will continue to grow responsibly, adhering to the capital allocation priorities we have outlined. We have therefore invested £328m by way of capital expenditure and a further £64m on bolt-on acquisitions.
"In addition, we spent £17m under the share buyback programme and all of this was achieved whilst maintaining leverage well within our stated range of 1.5 to 2.0 times net debt to EBITDA." ■