Hangar's maiden dividend
Hangar 8 is one of Europe's largest operators of privately owned passenger jet aircraft. It qualified for the Jim Slater Zulu Screen towards the end of November, with a ROCE of 19% and a PEG ratio of 0.4. Indeed, earnings grew by 83% in 2013 and 14% in 2014. Furthermore, earnings are expected to grow by another 70% over the next twelve months.
This growth has been supported by demand for long-range jets. To reflect this change in market demand, Hangar 8 has been changing the mix of its fleet in order to offer a wider range of intercontinental business air travel. Hangar 8's growth has also been supported by acquisitions. The company gained 100% ownership of Oasis Flight Malta Limited this year, which provided an additional Air Operators Certificate and enhanced Hangar's foothold across Europe.
The management team are optimistic about the company's future performance and have therefore recommended paying out a maiden dividend of 2.3p per share for the financial year ending 30 June 2014. This dividend can only be paid if the shareholders approved it at the company's Annual General Meeting of the Company - which will take place on Monday 5th January, 2015 - so keep you eyes peeled.
Ashtead pushes on
Ashtead - the international equipment rental group - qualified for the CAN-SLIM-esque screen on 30 December. Earnings have grown as the company pushed ahead with its strategy of investing in its own established tool-hire stores while opening or acquiring new sites. Indeed, the company's earnings for 2014 (61.2p) were nearly ten times larger than the earnings generated in 2010 (6.6p). Furthermore, Ashtead enjoyed 28% growth in earnings over the last twelve months.
Ashtead's management team believe that recent growth has been 'driven by strong same-store growth supplemented by greenfield openings and bolt-on acquisitions.' Since June 2013, the company has added 105 locations in the US across a range of market sectors with different characteristics. The market has responded well to this growth, as Ashtead has beaten the market by 56% over the last year. Brokers are also becoming increasingly optimistic. Since December 2013, EPS estimates have risen by around 20% - from 50.p to 59.9p.…
