Ashtead Group (LSE:AHT) Expects Rental Revenue Growth in U.S., Canada, and UK in FY24

3 min read | September 05, 2024 04:07 AM BST | By Team Kalkine Media

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Ashtead Group (LSE:AHT) Expects Rental Revenue Growth in U.S., Canada, and UK in FY24 — Image source: Shutterstock

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Highlights

In FY24, AHT's U.S. rental revenue increased by 12%, while Canada and the UK saw revenue rises of 10% and 9%, respectively.

Final dividend of 89.25 US cents per share declared; payment pending AGM approval.

Ashtead Group PLC (LSE:AHT) is a UK-based global equipment rental firm. It is a member of the FTSE 100 index. It is running under the brand Sunbelt Rentals in the United Kingdom, Canada, and the United States. The company provides a wide selection of construction and industrial equipment for various applications, serving a broad and diverse clientele.

In FY24, AHT's U.S. rental revenue grew by 12% to USD 6.558 billion, fuelled by both volume and rate improvements. In Canada, rental revenue rose by 10% to CAD 605 million, and the UK experienced a 9% increase, reaching GBP 466 million. However, despite these revenue gains, higher average debt levels and increased financing costs resulted in a slight decline in adjusted profit before tax compared to the previous year.

Moreover, in FY24, the company demonstrated improved liquidity with a current ratio of 1.13x, up from 1.01x in FY23. Additionally, profitability was also good, with a net margin of 14.7% compared to the industry median of 6.6%.

Recent Business Update

On August 29, 2024, Ashtead Group plc announced a final dividend of 89.25 US cents per share for June 18, 2024. Shareholders have the choice to take the dividend in either USD or GBP. The payment is set for September 10, 2024, subject to AGM approval.

Company Outlook

According to the company, North America's end markets are robust, driven by high demand from major projects and new legislation. Ashtead is strategically positioned to capitalize on these conditions with its Sunbelt 4.0 strategy, targeting sustainable growth and favourable returns. The Board remains optimistic about the outlook.

Top 10 Shareholders:

Ashtead Group's top 10 shareholders together hold approximately 29.19% of the total shares. BlackRock Investment Management (UK) Ltd is the biggest shareholder with about 5.99% stake, followed by Dodge & Cox with around 5.18%, as shown in the chart below.

Stock Performance

The stock has increased by approximately 2.19% in the past month and has surged by around 0.84% over the last six months. It has a 52-week low of GBX 4,437.00 and a 52-week high of GBX 6,180.00 and is currently trading above the average of these 52-week high and low values.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 04 September 2024. The reference data in this report has been partly sourced from EODHD/Others.

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