Highlights
Momentum continues with first half revenue growth of 17%
Record first half pre-tax profit2 of £141m (2011: £84m)
Group EBITDA margin rises to 41% (2011: 36%)
Strategy of specialty bolt-ons continued with acquisition of JMR Industries
Board now anticipates full year profit ahead of its earlier expectations
Interim dividend raised 50% to 1.5p per share (2011: 1.0p)
Ashtead's chief executive, Geoff Drabble, commented:
"It is pleasing to report another quarter where strong revenue growth and ongoing operational efficiency have delivered record first half pre-tax profits of £141m. With this momentum clearly established in the business we now anticipate a full year profit ahead of our earlier expectations.
Beyond the current financial year we remain well-placed to see growth over the medium term from either continued structural change or end market recovery. We are also generating high margins which, together with our much larger and younger fleet, results in an ability to fund significant growth whilst continuing to reduce leverage. Therefore, we expect net debt to EBITDA leverage to be sustained below two times.
With a broad range of metrics already at record levels at this stage in the cycle, together with a strong balance sheet to support medium term growth opportunities, the Board looks forward with confidence."
