Ashtead: shares higher after 'solid' annual results.
(CercleFinance.com) - British industrial equipment rental company Ashtead reported higher annual profits on Tuesday, favourably impacted by the weaker sterling, while stressing a "good momentum" for the group.
The company said pre-tax profit rose to 793 million pounds for the period ended 30 April 2017, compared to 645 million in the previous financial year.
Group revenue for the year increased 25% to 3,187 million pounds from 2,546 million pounds.
Analysts at Liberum - who reiterate their "buy" rating and 1,940 pence target price on the stock - highlight a "solid finish" to FY 2017 and a "confident outlook" beyond.
"With (...) growth funded internally we expect the leverage to reach just 1.3x in FY 2019, providing management with significant optionality to further accrete shareholder value," the broker commented.
In particular Liberum expects the market to focus on the long-term upside offered by increased rental penetration in the US market.
Finally, Ashtead recommended a final dividend of 22.75 pence per share, making 27.5 pence for the full year, an increase of 22% compared to FY 2016.
Listed in London, the shares were up 2.2 percent at 1,677 pence after these results.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The company said pre-tax profit rose to 793 million pounds for the period ended 30 April 2017, compared to 645 million in the previous financial year.
Group revenue for the year increased 25% to 3,187 million pounds from 2,546 million pounds.
Analysts at Liberum - who reiterate their "buy" rating and 1,940 pence target price on the stock - highlight a "solid finish" to FY 2017 and a "confident outlook" beyond.
"With (...) growth funded internally we expect the leverage to reach just 1.3x in FY 2019, providing management with significant optionality to further accrete shareholder value," the broker commented.
In particular Liberum expects the market to focus on the long-term upside offered by increased rental penetration in the US market.
Finally, Ashtead recommended a final dividend of 22.75 pence per share, making 27.5 pence for the full year, an increase of 22% compared to FY 2016.
Listed in London, the shares were up 2.2 percent at 1,677 pence after these results.
Copyright (c) 2017 CercleFinance.com. All rights reserved.