Highlights
Group rental revenue up 17%
Group EBITA margins up to 29% (2015: 27%)
Group pre-tax profit of £645m, up 24% at constant exchange rates
£1.2bn of capital invested in the business (2015: £1.1bn)
Group RoI of 19% (2015: 19%)
Net debt to EBITDA leverage of 1.7 times (2015: 1.8 times)
Proposed final dividend of 18.5p, making 22.5p for the full year, up 48% (2015: 15.25p)
Commencing a share buy-back of up to £200m in 2016/17
Ashtead's chief executive, 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%. These strong margins, together with the natural moderation of our replacement fleet expenditure, mean we are entering a phase where we anticipate both good earnings growth and significant free cash flow generation. We therefore have the flexibility to continue both to invest in our long-term structural growth opportunity and enhance returns to shareholders. As a consequence, we have announced today both a proposed 48% increase in our full year dividend to 22.5p and a share buyback of up to £200m. As always, we will continue to grow responsibly and will operate within our 1.5 to 2.0 times net debt to EBITDA range.
We have seen a good seasonal upward trend in fleet on rent throughout the Spring which has continued into the new financial year. Our end markets remain strong, the structural drivers are still in place and we have a strong balance sheet which allows us to execute our plans responsibly. As a consequence, the Board continues to look to the medium term with confidence."
