Ashtead Group has a progressive dividend policy, which considers both profitability and cash generation, and results in a dividend that is sustainable across the cycle. Their intention has always been to increase the dividend as profits increase and be able to maintain it when profits decline. However, in a year of slightly lower profit but strong cash generation, a strong balance sheet and a positive outlook, the Board is recommending an increased final dividend of 35.0p per share (2020: 33.5p) making 42.15p for the year (2020: 40.65p). If approved at the forthcoming Annual General Meeting, the final dividend will be paid on 21 September 2021 to shareholders on the register on 20 August 2021.
Otheer financial highlights include:
Strong market outperformance
Revenue up 3%; rental revenue up 1%
Operating profit of £1,135m (2020: £1,224m)
Adjusted pre-tax profit of £998m (2020: £1,061m)
Adjusted earnings per share of 166.0p (2020: 175.0p)
£718m of capital invested in the business (2020: £1.5bn)
Record free cash flow of £1,382m (2020: £792m)
£125m spent on bolt-on acquisitions (2020: £453m)
Net debt to EBITDA leverage of 1.4 times (2020: 1.9 times)
Sunbelt 3.0, the next phase of their strategic plan, launched in April
