Ashtead Group (AHT)

Sector:

Support

Index:

FTSE 100

5,640.00p
   
  • Change Today:
      76.00p
  • 52 Week High: 5,762.00p
  • 52 Week Low: 4,444.00p
  • Currency: UK Pounds
  • Shares Issued: 437.37m
  • Volume: 885,720
  • Market Cap: £24,668m
  • RiskGrade: 116

Ashtead lifts FY expectations after record first half

By Michele Maatouk

Date: Tuesday 07 Dec 2021

LONDON (ShareCast) - (Sharecast News) - Equipment rental firm Ashtead lifted its expectations for the full year as it reported a record first-half performance on Tuesday, hailing momentum across the business.
Adjusted pre-tax profit rose 42% to $979m on revenue of $3.9bn, up 18% on the first half of 2020. Rental revenue was 20% higher at $3.5bn.

The interim dividend was lifted 28% to 12.5 cents per share and Ashtead said it now anticipates full-year results ahead of its previous expectations.

In the US, rental only revenue was 16% higher on the previous year at $2.3bn and 9% higher than in 2019, representing continued market outperformance.

Meanwhile, the UK business generated rental only revenue of £203m, up 18% on the prior year. Ashtead said that while its performance continues to benefit from the company's essential support to the Department of Health in its Covid-19 response efforts, the core business is performing strongly and is benefitting from operational improvements, with total revenue up 35% to £368m.

Chief executive Brendan Horgan said: "The group's strong performance continues with rental revenue up 20% for the half year over the prior year, but more importantly up 14% when compared with the first half of 2019/20, both at constant currency.

"Our business has strong momentum in supportive markets. The benefit we derive from the diversity of our products, services and end markets, our investment in technology and ongoing structural change, enhanced by the environmental and social aspects of ESG, enables the board to look to the future with confidence. Notwithstanding the volatility that continues to arise from Covid, the fundamentals of our business are strong and we now expect full year performance to be ahead of our previous expectations."

At 0915 GMT, the shares were up 2.5% at 6,354.76p.

Sophie Lund-Yates, equity analyst at Hargreaves Lansdown, said: "Ashtead's heavy duty industrial rental equipment fell out of favour during the peak of the pandemic, which is why new results look so spritely in comparison. However it's been achieved, knocking the lid off full year expectations is good going. As the world, and more specifically, industrial work, has started to resume, Ashtead stands to benefit. Plans to build out other revenue streams have merit, but for now, it's still the traditional equipment rental business that's bringing home the bacon.

"The group's enjoyed favourable market sentiment over the last few months, boosting the valuation in a big way. While the optimism can be understood, it shouldn't be forgotten that Ashtead is an operationally leveraged business. As a cyclical company, its fortunes wax and wane with the wider economy too, so all-in, there could be some volatility if there are any unwelcome economic surprises."

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Ashtead Group Market Data

Currency UK Pounds
Share Price 5,640.00p
Change Today 76.00p
% Change 1.37 %
52 Week High 5,762.00p
52 Week Low 4,444.00p
Volume 885,720
Shares Issued 437.37m
Market Cap £24,668m
RiskGrade 116

Ashtead Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
81.88% below the market average81.88% below the market average81.88% below the market average81.88% below the market average81.88% below the market average
75.56% below the sector average75.56% below the sector average75.56% below the sector average75.56% below the sector average75.56% below the sector average
Price Trend
70.17% above the market average70.17% above the market average70.17% above the market average70.17% above the market average70.17% above the market average
38.61% above the sector average38.61% above the sector average38.61% above the sector average38.61% above the sector average38.61% above the sector average
Income
50.06% below the market average50.06% below the market average50.06% below the market average50.06% below the market average50.06% below the market average
72.31% below the sector average72.31% below the sector average72.31% below the sector average72.31% below the sector average72.31% below the sector average
Growth
44.44% above the market average44.44% above the market average44.44% above the market average44.44% above the market average44.44% above the market average
36.00% above the sector average36.00% above the sector average36.00% above the sector average36.00% above the sector average36.00% above the sector average

What The Brokers Say

Strong Buy 5
Buy 10
Neutral 4
Sell 1
Strong Sell 0
Total 20
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Ashtead Group Dividends

  Latest Previous
  Interim Final
Ex-Div 11-Jan-24 10-Aug-23
Paid 08-Feb-24 12-Sep-23
Amount 15.75¢ 85.00¢

Trades for 28-Mar-2024

Time Volume / Share Price
17:02 159,680 @ 5,631.77p
17:25 274 @ 5,618.36p
17:25 77 @ 5,574.62p
16:49 13,842 @ 5,630.95p
16:49 7,828 @ 5,630.95p

Ashtead Group Key Personnel

CEO Brendan Horgan
CFO Michael Pratt

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