REG - Ashtead Group PLC - Audited & Unaudited results for Q4 ended 30/4/25
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RNS Number : 0728N Ashtead Group PLC 17 June 2025
17 June 2025
Audited results for the year and unaudited results
for the fourth quarter ended 30 April 2025
Performance(1) Fourth quarter Year
2025 2024 Growth(2) 2025 2024 Growth(2)
$m $m % $m $m %
Revenue 2,529 2,628 -4% 10,792 10,859 -1%
Rental revenue 2,334 2,313 1% 9,980 9,630 4%
Adjusted(3) EBITDA 1,147 1,141 1% 5,022 4,893 3%
Operating profit 523 561 -7% 2,557 2,654 -4%
Adjusted(3) profit before taxation 430 446 -3% 2,128 2,230 -5%
Profit before taxation 392 417 -6% 1,998 2,110 -5%
Adjusted(3) earnings per share 78.7¢ 79.3¢ -1% 369.5¢ 386.5¢ -4%
Earnings per share 71.9¢ 74.4¢ -3% 346.5¢ 365.8¢ -5%
Full-year highlights
· Record Group rental revenue up 4%(2); revenue down 1%, impacted
by lower sales of used
equipment
· Operating profit of $2,557m (2024: $2,654m), with $142m lower
gains on disposal
· Adjusted(3) profit before taxation of $2,128m (2024: $2,230m)
· Adjusted(3) earnings per share of 369.5¢ (2024: 386.5¢)
· $2.4bn of capital invested in the business (2024: $4.3bn)
· Free cash inflow(1) of $1,790m (2024: $216m)
· Net debt to adjusted EBITDA leverage(2) of 1.6 times (2024: 1.7
times)
· Proposed final dividend of 72¢, making 108¢ for the full year
(2024: 105¢)
(1) Throughout this announcement we refer to a number of alternative performance
measures which provide additional useful information. The directors have
adopted these to provide additional information on the underlying trends,
performance and position of the Group. The alternative performance measures
are not defined by IFRS and therefore may not be directly comparable with
other companies' alternative performance measures but are defined and
reconciled in the Glossary of Terms on page 34.
(2) Calculated at constant exchange rates applying current period exchange rates.
(3) Adjusted results are stated before amortisation and non-recurring costs
associated with the move of the Group's primary listing to the US.
Ashtead's chief executive, Brendan Horgan, commented:
The Group delivered record full year rental revenue and adjusted EBITDA, with
growth of 4% and 3% respectively. I'd like to thank the team for these
results, while leading with our safety-first culture and Engage for Life
programme, which are continuing to drive improvements in our safety metrics.
We demonstrated the through-cycle, cash generative power of our business,
delivering near record free cash flow of $1.8bn for the year. Combined with
sustained levels of profitability, this enabled us to invest $2.4bn of capital
in our growth runway, alongside our highest ever level of shareholder returns
totalling $886m across dividends and share buybacks.
We continue to take advantage of strong secular tailwinds and structural
progression, within our $87bn and growing industry. While completions
continue to outpace starts in local non-residential construction, mega project
activity continues to be robust, particularly in the data centre,
semi-conductor and LNG space, with the pipeline projected to grow from c.
$840bn in the FY23 - FY25 timeframe, to more than $1.3 trillion in the FY26 -
FY28 timeframe. This growth comes alongside our operational success in
progressing rate, as we deliver value and solutions to our customers through
Sunbelt's extensive range of products, services and expertise.
We remain focused on delivering our Sunbelt 4.0 growth strategy and, after our
first year, we continue to realise momentum and extract benefits from the
foundational investments made throughout Sunbelt 3.0. We added over 42,000
new customers in the year on top of the 118,000 accounts opened during Sunbelt
3.0. These new customers represent market share gains and combined generated
more than $1.9bn of revenue in the year. Our cross-selling effectiveness
has expanded with almost 50% of our revenue coming from customers renting both
General Tool and three or more Specialty lines of business. We are achieving
margin progression by driving improved efficiencies and even better customer
experience. Our 401 locations added during Sunbelt 3.0 delivered an
incremental $1.9bn in revenue, growing c. 20% in the year, and c. $900m in
EBITDA. We continue to invest in our businesses' secular growth
opportunities, and in our first year of Sunbelt 4.0, we added an additional 61
locations. I am proud of the team for driving world-class execution and
positioning us for even more success.
We are on track to move the Group's primary listing to the US in the first
quarter of calendar year 2026, and I would like to thank shareholders for
their engagement and approval at last week's EGM.
The strength of our foundation and growth strategy is reflected in our results
and guidance today. I am excited for FY26 and what lies ahead as we continue
to advance our great company.
Contacts:
Will Shaw Director of Investor Relations +44 (0)20 7726 9700
Sam Cartwright H/Advisors Maitland +44 (0)20 7379 5151
Brendan Horgan and Alex Pease will hold a conference call for equity analysts
to discuss the results and outlook at 10am (5am EST) on Tuesday, 17 June
2025. The call will be webcast live via the Company's website at
www.ashtead-group.com (http://www.ashtead-group.com) and a replay will be
available via the website shortly after the call concludes. A copy of this
announcement and the slide presentation used for the call are available for
download on the Company's website. The usual conference call for bondholders
will begin at 3pm (10am EST).
Analysts and bondholders have already been invited to participate in the
analyst and bondholder calls but any eligible person not having received
details should contact the Company's PR advisers, H/Advisors Maitland (Audrey
Da Costa) at +44 (0)20 7379 5151.
Forward-looking statements This announcement contains forward-looking
statements. These have been made by the directors in good faith using
information available up to the date on which they approved this report. The
directors can give no assurance that these expectations will prove to be
correct. Due to the inherent uncertainties, including both business and
economic risk factors underlying such forward-looking statements, actual
results may differ materially from those expressed or implied by these
forward-looking statements. Except as required by law or regulation, the
directors undertake no obligation to update any forward-looking statements
whether as a result of new information, future events or otherwise.
Change in segment information
During the year, the Group has reassessed the basis of its segment information
considering recent organisational changes. The Group operates under two
primary geographic regions reflecting its North American activities and assets
and its UK activities and assets. The North American business is further
split operationally as General Tool and Specialty, reflecting the nature of
its products and services and the management structure of the Group. As
such, the Group has identified its reportable operating segments as North
America General Tool, North America Specialty and UK, which we believe
reflects better the basis upon which we review the performance of the business
internally and aligns with the basis of our strategic growth plan, Sunbelt
4.0. Prior year comparative information has been restated to reflect these
updated segments.
Trading results
Segment
Revenue EBITDA(1,2) Profit(1,2)
2025 2024 2025 2024 2025 2024
$m $m $m $m $m $m
North America General Tool 6,397.0 6,720.7 3,477.7 3,653.3 2,093.4 2,394.3
North America Specialty 3,487.4 3,250.4 1,672.1 1,438.4 1,134.5 968.4
UK 907.3 887.6 239.7 235.0 68.6 71.4
Central costs - - (367.8) (434.1) (609.5) (659.2)
10,791.7 10,858.7 5,021.7 4,892.6 2,687.0 2,774.9
Financing costs (559.0) (544.5)
Adjusted profit before tax 2,128.0 2,230.4
Non-recurring costs (15.4) -
Amortisation (114.4) (120.9)
Profit before taxation 1,998.2 2,109.5
Taxation charge (487.7) (511.1)
Profit attributable to equity holders of the Company 1,510.5 1,598.4
Margins
North America General Tool 54.4% 54.4% 32.7% 35.6%
North America Specialty 47.9% 44.3% 32.5% 29.8%
UK 26.4% 26.5% 7.6% 8.0%
Group 46.5% 45.1% 24.9% 25.6%
(1) Segment performance is measured internally excluding central costs which
support the business as a whole. Furthermore, the Group manages debt,
including lease liabilities, centrally and therefore segment profit measures
are presented before the application of lease accounting adjustments in
accordance with IFRS 16 Leases but instead reflect the cash cost incurred in
the period. The impact of lease accounting adjustments are included within
the central costs line item above.
(2) Segment results presented are adjusted EBITDA and adjusted operating
profit. A reconciliation of adjusted measures to statutory measures is
provided in the Glossary of Terms on page 34.
North America General Tool
In the North American General Tool business, rental only revenue of $4,903m
(2024: $4,852m) was 1% higher than the prior year, driven by both volume and
rate improvement, demonstrating the benefits of our strategy of broadening our
end markets. Organic performance (same-store and greenfields) was flat,
while bolt-ons since 1 May 2023 contributed 1% of rental only revenue
growth. Rental revenue increased 1% to $5,890m (2024: $5,826m). We
estimate that hurricane response efforts contributed $25 - 30m to General Tool
rental revenue in the year. This hurricane impact, in part, mitigated the
moderating local commercial construction market. North American General Tool
total revenue, including new and used equipment, merchandise and consumable
sales, was $6,397m (2024: $6,721m). As expected, this reflects a lower
level of used equipment sales than last year ($338m; 2024: $720m), when we
took advantage of improving fleet deliveries and strong second-hand markets to
catch up on deferred disposals.
We continued to focus on the cost base which contributed to North America
General Tool EBITDA of $3,478m (2024: $3,653m) and an EBITDA margin of 54.4%
(2024: 54.4%). As anticipated, lower used equipment sales and second-hand
values resulted in lower gains on sale. After higher depreciation on a
larger fleet, this contributed to adjusted operating profit decreasing by 13%
to $2,093m (2024: $2,394m) with a margin of 32.7% (2024: 35.6%).
North America Specialty
In the North American Specialty business, rental only revenue of $2,383m
(2024: $2,154m) was 11% higher than the prior year, also driven by both volume
and rate improvement, demonstrating the benefits of our strategy of growing
our Specialty businesses. Organic growth (same-store and greenfields) was
10%, while bolt-ons since 1 May 2023 contributed 1% of rental only revenue
growth. Rental revenue increased 8% to $3,313m (2024: $3,062m). We
estimate that hurricane response efforts contributed $60 - 70m to Specialty
rental revenue in the year. North American Specialty total revenue,
including new and used equipment, merchandise and consumable sales, was
$3,487m (2024: $3,250m).
This performance combined with our focus on the cost base, lower scaffold
erection and dismantling revenue and recovery in the Film & TV business,
contributed to North American Specialty EBITDA of $1,672m (2024: $1,438m) and
an EBITDA margin of 47.9% (2024: 44.3%). After higher depreciation on a
larger fleet, this contributed to adjusted operating profit increasing by 17%
to $1,135m (2024: $968m) with a margin of 32.5% (2024: 29.8%).
UK
The UK business generated rental only revenue of $599m, up 2% on the prior
year (2024: $586m). Rental only revenue growth has been driven by both rate
and volume improvement. Rental revenue increased 5% to $778m (2024: $742m),
while total revenue increased 2% to $907m (2024: $888m).
In the UK, the focus remains on delivering operational efficiency and
long-term, sustainable returns in the business. While we continue to improve
rental rates, this remains an area of focus. The UK generated EBITDA of
$240m (2024: $235m) at a margin of 26.4% (2024: 26.5%) and adjusted operating
profit of $69m (2024: $71m) at a margin of 7.6% (2024: 8.0%).
Group
Group revenue was $10,792m (2024: $10,859m) during the year. This revenue
and our focus on the cost base, but with lower used equipment sales, resulted
in adjusted EBITDA increasing 3% to $5,022m (2024: $4,893m) and after higher
depreciation and interest costs, adjusted operating profit decreased 3% to
$2,687m (2024: $2,775m). The higher increase in the depreciation charge
relative to revenue growth reflects lower utilisation of a larger fleet and
the ongoing impact of life cycle fleet inflation, contributing to the decline
in adjusted operating profit. In addition, increased financing costs due to
higher average debt levels resulted in adjusted profit before tax being 5%
lower than the comparative period.
Overall, including central costs, Group adjusted operating profit decreased to
$2,687m (2024: $2,775m). We invested in the infrastructure of the business
during Sunbelt 3.0 to support the growth of the business now and into the
future. Our intention is to leverage this infrastructure during Sunbelt 4.0
as we look to improve operating performance. After increased net financing
costs of $559m (2024: $545m), reflecting higher average debt levels, Group
adjusted profit before tax was $2,128m (2024: $2,230m). After a tax charge
of 24% (2024: 24%) of the adjusted pre-tax profit, adjusted earnings per share
were 369.5ȼ (2024: 386.5ȼ).
Statutory profit before tax was $1,998m (2024: $2,110m). This is after
non-recurring costs of $15m (2024: $nil) associated with the move of the
Group's primary listing to the US and amortisation of $114m (2024: $121m).
Included within the total tax charge is a tax credit of $30m (2024: $30m)
which relates to the amortisation of intangibles and non-recurring costs. As
a result, basic earnings per share were 346.5¢ (2024: 365.8¢).
Capital expenditure and acquisitions
Capital expenditure for the year was $2,401m gross and $1,873m net of disposal
proceeds (2024: $4,311m gross and $3,404m net). As a result, the Group's
rental fleet at 30 April 2025 at cost was $19bn and our average fleet age was
49 months (2024: 45 months) on an original cost basis.
We invested $137m (2024: $905m) in five bolt-on acquisitions during the year,
as we continue to both expand our footprint and diversify our end markets.
Further details are provided in Note 15.
Return on Investment
The Group return on investment was 15% (2024: 16%). For North America
General Tool, return on investment (excluding goodwill and intangible assets)
in the 12 months to 30 April 2025 was 20% (2024: 25%), while for North
America Specialty it was 30% (2024: 27%). The reduction in North America
General Tool return on investment reflects principally the impact of lower
utilisation of a larger fleet. In the UK, return on investment (excluding
goodwill and intangible assets) was 7% (2024: 7%). Return on investment
excludes the impact of IFRS 16.
Cash flow and net debt
The Group generated free cash flow of $1,790m (2024: $216m) during the year,
which is after capital expenditure payments of $2,707m (2024: $4,445m). In
December 2024, the Group launched a new share buyback programme of up to
$1.5bn over 18 months. During the year, we spent $342m (2024: $78m) on share
buybacks under this programme.
Net debt at 30 April 2025 was $10,331m (2024: $10,655m). Excluding the
effect of IFRS 16, net debt at 30 April 2025 was $7,517m (2024: $8,014m),
while the ratio of net debt to adjusted EBITDA was 1.6 times (2024: 1.7 times)
on a constant currency basis. The Group's target range for net debt to
adjusted EBITDA is 1.0 to 2.0 times, excluding the impact of IFRS 16.
Including the effect of IFRS 16, the ratio of net debt to adjusted EBITDA was
2.1 times (2024: 2.2 times) on a constant currency basis.
At 30 April 2025, availability under the senior secured debt facility was
$3,616m with an additional $6,194m of suppressed availability - substantially
above the $475m level at which the Group's entire debt package is covenant
free.
The Group's debt facilities are committed for an average of six years at a
weighted average cost of 5%.
Dividends
The Company has a progressive dividend policy, which considers both
profitability and cash generation, and results in a dividend that is
sustainable across the cycle. Our intention has always been to increase the
dividend as profits increase and be able to maintain it when profits decline.
This, combined with the Board's decision to rebalance the split between the
interim and final dividend, to broadly one third interim, two thirds final,
and reflecting its confidence in the future, the Board is recommending a final
dividend of 72.0¢ per share (2024: 89.25¢) making 108.0¢ for the year
(2024: 105.0¢), an increase of 3%. If approved at the forthcoming Annual
General Meeting, the final dividend will be paid on 10 September 2025 to
shareholders on the register on 8 August 2025.
The dividend is declared in US dollars but will be paid in sterling unless
shareholders elect to receive their dividend in US dollars. Those
shareholders who wish to receive their dividend in US dollars and have not yet
made an election may do so by contacting Equiniti on +44 (0) 371 384 2085.
The last day for election for the proposed final dividend is 22 August 2025.
Capital allocation
The Group remains disciplined in its approach to allocation of capital with
the overriding objective being to enhance shareholder value.
Our capital allocation framework remains unchanged and prioritises:
· organic fleet growth;
- same-stores;
- greenfields;
· bolt-on acquisitions; and
· a progressive dividend with consideration to both profitability and
cash generation that is sustainable through the cycle.
Additionally, we consider further returns to shareholders. In this regard,
we assess continuously our medium-term plans which take account of investment
in the business, growth prospects, cash generation, net debt and leverage.
As we execute on Sunbelt 4.0, we expect a number of years of strong earnings
and free cash flow generation. Given this outlook, we have the opportunity
to enhance returns to shareholders, while maintaining leverage towards the
middle of our target range of 1.0 to 2.0 times net debt to adjusted EBITDA
(excluding the IFRS 16).
Guidance
Set out below is our guidance for 2025/26:
Guidance
Rental revenue growth(1) 0% - 4%
Capital expenditure (gross)(2) $1.8bn - $2.2bn
Free cash flow(2) $2.0bn - $2.3bn
( )
(1) Represents change in year-over-year rental revenue at constant exchange
rates.
(2) Stated at C$1=$1.45 and £1=$1.26.
Directors' responsibility statement on the annual report
The responsibility statement below has been prepared in connection with the
Company's Annual Report & Accounts for the year ended 30 April 2025.
Certain parts thereof are not included in this announcement.
We confirm that to the best of our knowledge:
a) the consolidated financial statements, prepared in accordance with
UK-adopted International Accounting Standards ('IFRS') in conformity with the
requirements of the Companies Act 2006, give a true and fair view of the
assets, liabilities, financial position and profit of the Group;
b) the Strategic report includes a fair review of the development and
performance of the business and the position of the Group, together with a
description of the principal risks and uncertainties that it faces; and
c) the Annual Report and financial statements, taken as a whole, are fair,
balanced and understandable and provide the information necessary for
shareholders to assess the Group's position, performance, business model and
strategy.
By order of the Board
Alan Porter
Company secretary
16 June 2025
CONSOLIDATED INCOME STATEMENT
FOR THE THREE MONTHS AND YEAR ENDED 30 APRIL 2025
Unaudited Audited
Three months to 30 April Year to
30 April
2025 2024 2025 2024
$m $m $m $m
Revenue
Rental revenue 2,334.3 2,313.5 9,980.4 9,630.2
Sale of new equipment,
merchandise and consumables 83.3 91.1 344.0 369.7
Sale of used rental equipment 111.7 222.9 467.3 858.8
2,529.3 2,627.5 10,791.7 10,858.7
Operating costs
Staff costs (601.5) (602.6) (2,462.9) (2,485.1)
Other operating costs (701.7) (718.4) (2,936.3) (2,845.2)
Used rental equipment sold (88.4) (165.4) (386.2) (635.8)
(1,391.6) (1,486.4) (5,785.4) (5,966.1)
EBITDA* 1,137.7 1,141.1 5,006.3 4,892.6
Depreciation (586.9) (551.3) (2,334.7) (2,117.7)
Amortisation of intangibles (27.9) (28.6) (114.4) (120.9)
Operating profit 522.9 561.2 2,557.2 2,654.0
Interest income 4.4 0.2 4.5 1.8
Interest expense (135.1) (144.4) (563.5) (546.3)
Profit on ordinary activities
before taxation 392.2 417.0 1,998.2 2,109.5
Taxation (80.9) (92.3) (487.7) (511.1)
Profit attributable to equity
holders of the Company 311.3 324.7 1,510.5 1,598.4
Basic earnings per share 71.9¢ 74.4¢ 346.5¢ 365.8¢
Diluted earnings per share 72.0¢ 73.9¢ 345.8¢ 363.7¢
* EBITDA is presented here as an alternative performance measure as it is
commonly used by investors and lenders. This and other adjusted alternative
performance measures are detailed in the Glossary of Terms on page 34.
All revenue and profit is generated from continuing operations.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE THREE MONTHS AND YEAR ENDED 30 APRIL 2025
Unaudited Audited
Three months to Year to
30 April 30 April
2025 2024 2025 2024
$m $m $m $m
Profit attributable to equity holders of the Company 311.3 324.7 1,510.5 1,598.4
Items that will not be reclassified to profit or loss:
Remeasurement of the defined benefit pension plan - (22.6) - (22.6)
Movement on equity instruments held at fair value - - (25.5) -
Tax on items that will not be reclassified to profit or loss (1.8) 5.6 0.9 5.6
(1.8) (17.0) (24.6) (17.0)
Items that may be reclassified subsequently to profit or loss:
Foreign currency translation differences 106.2 (40.4) 54.8 (17.6)
Loss on cash flow hedge 0.1 - 0.3 0.2
106.3 (40.4) 55.1 (17.4)
Total other comprehensive income / (loss) for the period 104.5 (57.4) 30.5 (34.4)
Total comprehensive income for the period 415.8 267.3 1,541.0 1,564.0
CONSOLIDATED BALANCE SHEET AT 30 APRIL 2025
Audited
2025 2024
$m $m
Current assets
Inventories 147.2 162.0
Trade and other receivables 1,831.1 1,850.2
Current tax asset 23.1 13.0
Cash and cash equivalents 21.0 20.8
2,022.4 2,046.0
Non-current assets
Property, plant and equipment
- rental equipment 11,312.1 11,450.8
- other assets 1,919.2 1,797.7
13,231.3 13,248.5
Right-of-use assets 2,523.1 2,425.6
Goodwill 3,276.7 3,211.5
Other intangible assets 398.0 485.9
Other non-current assets 240.2 189.3
Current tax asset - 44.5
19,669.3 19,605.3
Total assets 21,691.7 21,651.3
Current liabilities
Trade and other payables 1,195.0 1,482.9
Current tax liability 8.7 10.1
Lease liabilities 298.8 273.8
Provisions 60.8 42.5
1,563.3 1,809.3
Non-current liabilities
Lease liabilities 2,553.3 2,406.8
Long-term borrowings 7,500.1 7,995.1
Provisions 102.0 75.4
Deferred tax liabilities 2,239.8 2,224.2
Other non-current liabilities 64.6 55.5
Net defined benefit pension plan liability 0.5 0.4
12,460.3 12,757.4
Total liabilities 14,023.6 14,566.7
Equity
Share capital 81.8 81.8
Share premium account 6.5 6.5
Capital redemption reserve 20.0 20.0
Own shares held by the Company (1,170.7) (818.7)
Own shares held by the ESOT (35.0) (43.5)
Cumulative foreign exchange translation differences (208.7) (263.5)
Retained reserves 8,974.2 8,102.0
Equity attributable to equity holders of the Company 7,668.1 7,084.6
Total liabilities and equity 21,691.7 21,651.3
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2025
Own Own Cumulative
shares shares foreign
Share Capital held by held exchange
Share premium redemption the by translation Retained
the ESOT
capital account reserve Company differences reserves Total
$m $m $m $m $m $m $m $m
Audited
At 1 May 2023 81.8 6.5 20.0 (740.9) (38.8) (245.9) 6,925.3 6,008.0
Profit for the year - - - - - - 1,598.4 1,598.4
Other comprehensive income:
Foreign currency
translation differences - - - - - (17.6) - (17.6)
Loss on cash flow hedge - - - - - - 0.2 0.2
Remeasurement of the defined
benefit pension plan - - - - - - (22.6) (22.6)
Tax on defined benefit
pension scheme - - - - - - 5.6 5.6
Total comprehensive income
for the year - - - - - (17.6) 1,581.6 1,564.0
Dividends paid - - - - - - (436.6) (436.6)
Own shares purchased
by the ESOT - - - - (29.9) - - (29.9)
Own shares purchased
by the Company - - - (77.8) - - - (77.8)
Share-based payments - - - - 25.2 - 22.3 47.5
Tax on share-based payments - - - - - - 9.4 9.4
At 30 April 2024 81.8 6.5 20.0 (818.7) (43.5) (263.5) 8,102.0 7,084.6
Profit for the year - - - - - - 1,510.5 1,510.5
Other comprehensive income:
Foreign currency translation
differences - - - - - 54.8 - 54.8
Loss on cash flow hedge - - - - - - 0.3 0.3
Movement on equity
instruments held at fair value - - - - - - (25.5) (25.5)
Tax on movement on equity
instruments held at fair value - - - - - - 0.9 0.9
Total comprehensive income
for the year - - - - - 54.8 1,486.2 1,541.0
Dividends paid - - - - - - (546.6) (546.6)
Own shares purchased
by the ESOT - - - - (85.5) - - (85.5)
Own shares purchased
by the Company - - - (352.0) - - - (352.0)
Share-based payments - - - - 94.0 - (65.3) 28.7
Tax on share-based payments - - - - - - (2.1) (2.1)
At 30 April 2025 81.8 6.5 20.0 (1,170.7) (35.0) (208.7) 8,974.2 7,668.1
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 30 APRIL 2025
Audited
2025 2024
$m $m
Cash flows from operating activities
Cash generated from operations before
changes in rental equipment 4,943.1 4,541.0
Payments for rental property, plant and equipment (2,251.2) (3,759.2)
Proceeds from disposal of rental property,
plant and equipment 461.7 831.7
Cash generated from operations 3,153.6 1,613.5
Financing costs paid (554.9) (513.1)
Tax received 44.5 -
Tax paid (469.3) (245.8)
Net cash generated from operating activities 2,173.9 854.6
Cash flows from investing activities
Acquisition of businesses (147.4) (875.6)
Disposal of businesses - 1.9
Financial asset investments - (15.0)
Payments for non-rental property, plant and equipment (455.6) (685.6)
Proceeds from disposal of non-rental
property, plant and equipment 61.2 47.5
Net cash used in investing activities (541.8) (1,526.8)
Cash flows from financing activities
Drawdown of loans 1,309.4 3,616.3
Redemption of loans (1,832.1) (2,275.0)
Repayment of principal under lease liabilities (138.0) (133.7)
Dividends paid (544.2) (436.1)
Purchase of own shares by the ESOT (85.5) (29.9)
Purchase of own shares by the Company (341.9) (78.4)
Net cash (used in)/generated from financing activities (1,632.3) 663.2
Decrease in cash and cash equivalents (0.2) (9.0)
Opening cash and cash equivalents 20.8 29.9
Effect of exchange rate differences 0.4 (0.1)
Closing cash and cash equivalents 21.0 20.8
Reconciliation of net cash flows to net debt
Decrease in cash and
cash equivalents in the period 0.2 9.0
(Decrease)/increase in debt through cash flow (660.7) 1,207.6
Change in net debt from cash flows (660.5) 1,216.6
Exchange differences 24.6 (9.7)
Debt acquired 28.1 154.5
Deferred costs of debt raising 10.1 8.7
New lease liabilities 274.0 325.3
(Decrease)/increase in net debt in the period (323.7) 1,695.4
Net debt at 1 May 10,654.9 8,959.5
Net debt at 30 April 10,331.2 10,654.9
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. General information
Ashtead Group plc ('the Company') is a company incorporated and domiciled in
England and Wales and listed on the London Stock Exchange. The condensed
consolidated financial statements as at, and for the year ended 30 April 2025,
comprise the Company and its subsidiaries ('the Group') and are presented in
US dollars.
The condensed consolidated financial statements for the year ended 30 April
2025 were approved by the directors on 16 June 2025.
This preliminary announcement of the results for the year ended 30 April 2025
contains information derived from the forthcoming 2024/25 Annual Report &
Accounts and does not constitute statutory accounts as defined in Section 434
of the Companies Act 2006. The statutory accounts for the year ended 30
April 2025 were approved by the directors on 16 June 2025 and will be
delivered to shareholders, filed with the Registrar of Companies and made
available on the Group's website at www.ashtead-group.com in July 2025. The
auditor's report on those accounts was unqualified, did not include a
reference to any matter by way of emphasis and did not contain a statement
under Section 498(2) or (3) of the Companies Act 2006.
Details of principal risks and uncertainties are given in the Review of Fourth
Quarter, Balance Sheet and Cash Flow accompanying these condensed consolidated
financial statements
The condensed consolidated financial statements for the year ended 30 April
2025 have been audited by the Group's auditors. The Group's auditors have
not audited the fourth quarter results.
2. Basis of preparation
The financial statements for the year ended 30 April 2025 have been prepared
in accordance with relevant UK-adopted International Accounting Standards
('IFRS'), including the Disclosure Guidance and Transparency Rules sourcebook
of the United Kingdom's Financial Conduct Authority and the accounting
policies set out in the Group's Annual Report & Accounts for the year
ended 30 April 2024.
In preparing the financial statements, the exchange rates used in respect of
the pound sterling (£) and Canadian dollar (C$) are:
Pound sterling Canadian dollar
2025 2024 2025 2024
Average for the three months ended 30 April 1.29 1.26 0.70 0.74
Average for the year ended 30 April 1.28 1.26 0.72 0.74
At 30 April 1.34 1.25 0.72 0.73
The directors have adopted various alternative performance measures to provide
additional useful information on the underlying trends, performance and
position of the Group. The alternative performance measures are not defined
by IFRS and therefore may not be directly comparable with other companies'
alternative performance measures but are defined within the Glossary of Terms
on page 34.
The financial statements have been prepared on the going concern basis. The
Group's internal budgets and forecasts of future performance, available
financing facilities and facility headroom (see Note 12), provide a reasonable
expectation that the Group has adequate resources to continue in operation for
the foreseeable future and consequently the going concern basis continues to
be appropriate in preparing the financial statements.
3. Segmental analysis
The Group's externally reportable segments reflect the internal reporting
structure of the Group, which is the basis on which resource allocation
decisions are made by management in the pursuit of strategic objectives.
During the period, the Group has reassessed the basis of its segmental
information considering recent organisational changes. The Group operates
under two primary geographic regions reflecting its North American activities
and assets, and its UK activities and assets. The North American business is
further split by General Tool and Specialty, reflecting the nature of its
products and services and the management structure of the Group. As such,
the Group has identified its reportable operating segments as North America -
General Tool, North America - Specialty and UK which we believe reflects
better the basis upon which we review the performance of the business
internally and aligns with the basis of our strategic growth plan, Sunbelt
4.0.
The Group manages debt (including lease liabilities) and taxation centrally,
rather than by business unit. Accordingly, segmental results are stated
excluding the impact of IFRS 16 lease accounting. Furthermore, segment
results are stated before interest and taxation which are reported as central
Group items. This is consistent with the way the chief executive reviews the
business.
Segmental information for the year ended 30 April 2024 has been restated to
reflect these updated segments.
Three months to 30 April 2025 (unaudited)
North America
General Tool Central costs
Specialty UK Group
$m $m $m $m $m
Revenue
Rental revenue 1,378.1 767.8 188.4 - 2,334.3
Sale of new equipment, merchandise
and consumables 40.6 22.9 19.8 - 83.3
Sale of used rental equipment 79.4 19.5 12.8 - 111.7
1,498.1 810.2 221.0 - 2,529.3
Adjusted segment EBITDA 802.1 384.3 56.1 (95.2) 1,147.3
Depreciation (350.1) (132.0) (42.3) (62.5) (586.9)
Adjusted operating profit 452.0 252.3 13.8 (157.7) 560.4
Net financing costs (130.7)
Non-recurring costs (9.6)
Amortisation (27.9)
Profit before taxation 392.2
Taxation (80.9)
Profit attributable to equity shareholders 311.3
Three months to 30 April 2024 (unaudited) (restated)
North America
General Tool Central costs
Specialty UK Group
$m $m $m $m $m
Revenue
Rental revenue 1,373.9 751.2 188.4 - 2,313.5
Sale of new equipment, merchandise
and consumables 47.2 20.4 23.5 - 91.1
Sale of used rental equipment 179.2 25.7 18.0 - 222.9
1,600.3 797.3 229.9 - 2,627.5
Adjusted segment EBITDA 855.9 351.6 62.1 (128.5) 1,141.1
Depreciation (333.1) (117.8) (41.7) (58.7) (551.3)
Adjusted operating profit 522.8 233.8 20.4 (187.2) 589.8
Net financing costs (144.2)
Non-recurring costs -
Amortisation (28.6)
Profit before taxation 417.0
Taxation (92.3)
Profit attributable to equity shareholders 324.7
Year to 30 April 2025 (audited)
North America
General Tool Central costs
Specialty UK Group
$m $m $m $m $m
Revenue
Rental revenue 5,889.7 3,312.8 777.9 - 9,980.4
Sale of new equipment, merchandise
and consumables 169.5 95.7 78.8 - 344.0
Sale of used rental equipment 337.8 78.9 50.6 - 467.3
6,397.0 3,487.4 907.3 - 10,791.7
Adjusted segment EBITDA 3,477.7 1,672.1 239.7 (367.8) 5,021.7
Depreciation (1,384.3) (537.6) (171.1) (241.7) (2,334.7)
Adjusted operating profit 2,093.4 1,134.5 68.6 (609.5) 2,687.0
Net financing costs (559.0)
Non-recurring costs (15.4)
Amortisation (114.4)
Profit before taxation 1,998.2
Taxation (487.7)
Profit attributable to equity shareholders 1,510.5
Year to 30 April 2024 (audited) (restated)
North America
General Tool Central costs
Specialty UK Group
$m $m $m $m $m
Revenue
Rental revenue 5,825.9 3,061.9 742.4 - 9,630.2
Sale of new equipment, merchandise
and consumables 174.4 115.5 79.8 - 369.7
Sale of used rental equipment 720.4 73.0 65.4 - 858.8
6,720.7 3,250.4 887.6 - 10,858.7
Adjusted segment EBITDA 3,653.3 1,438.4 235.0 (434.1) 4,892.6
Depreciation (1,259.0) (470.0) (163.6) (225.1) (2,117.7)
Adjusted operating profit 2,394.3 968.4 71.4 (659.2) 2,774.9
Net financing costs (544.5)
Non-recurring costs -
Amortisation (120.9)
Profit before taxation 2,109.5
Taxation (511.1)
Profit attributable to equity shareholders 1,598.4
North America
General Tool Central items
Specialty UK Group
$m $m $m $m $m
At 30 April 2025 (audited)
Segment assets 10,082.5 3,594.9 1,198.3 6,771.9 21,647.6
Cash 21.0
Taxation assets 23.1
Total assets 21,691.7
At 30 April 2024 (audited) (restated)
Segment assets 10,016.5 3,733.2 1,163.2 6,660.1 21,573.0
Cash 20.8
Taxation assets 57.5
Total assets 21,651.3
4. Operating costs and other income
Unaudited
Audited
Three months Year
to 30 April to 30 April
2025 2024 2025 2024
$m $m $m $m
Staff costs:
Salaries 546.4 545.9 2,242.0 2,265.1
Social security costs 42.8 44.5 172.8 172.3
Other pension costs 12.3 12.2 48.1 47.7
601.5 602.6 2,462.9 2,485.1
Other operating costs:
Vehicle costs 165.4 159.4 708.2 658.0
Spares, consumables & external repairs 152.6 133.0 584.5 547.8
Facility costs 29.8 30.3 115.4 115.7
Other external charges 353.9 395.7 1,528.2 1,523.7
701.7 718.4 2,936.3 2,845.2
Used rental equipment sold 88.4 165.4 386.2 635.8
Depreciation and amortisation:
Depreciation of tangible assets 532.1 498.9 2,121.9 1,913.6
Depreciation of right-of-use assets 54.8 52.4 212.8 204.1
Amortisation of intangibles 27.9 28.6 114.4 120.9
614.8 579.9 2,449.1 2,238.6
2,006.4 2,066.3 8,234.5 8,204.7
5. Net financing costs
Unaudited
Audited
Three months Year
to 30 April to 30 April
2025 2024 2025 2024
$m $m $m $m
Interest income:
Net income on the defined benefit pension plan asset - 0.2 - 0.9
Other interest 4.4 - 4.5 0.9
4.4 0.2 4.5 1.8
Interest expense:
Bank interest payable 23.5 38.0 122.0 175.1
Interest payable on senior notes 69.9 69.8 279.4 232.3
Interest payable on lease liabilities 37.8 33.7 147.0 128.0
Non-cash unwind of discount on liabilities 1.2 0.6 5.0 2.2
Amortisation of deferred debt raising costs 2.7 2.3 10.1 8.7
135.1 144.4 563.5 546.3
6. Taxation
The tax charge for the year has been determined by applying the expected
effective tax rates in each jurisdiction for the year as a whole, based on the
tax rates in force as at 30 April 2025 of 25% in the US (2024: 25%), 26% in
Canada (2024: 25%) and 25% in the UK (2024: 25%). This results in a blended
effective rate for the Group as a whole of 24% (2024: 24%) for the year.
The tax charge of $488m (2024: $511m) on the profit before taxation of $1,998m
(2024: $2,110m) can be explained as follows:
Year to 30 April
2025 2024
$m $m
Current tax
- current tax on income for the year 494.6 294.9
- adjustments to prior year (14.8) (3.9)
479.8 291.0
Deferred tax
- origination and reversal of temporary differences 13.9 236.1
- adjustments to prior year (6.0) (16.0)
7.9 220.1
Tax charge 487.7 511.1
Comprising:
- US 471.6 504.1
- Canada 10.6 3.7
- UK 5.5 3.3
487.7 511.1
Following its state aid investigation, in April 2019 the European Commission
announced its decision that the Group Financing Exemption in the UK controlled
foreign company ('CFC') legislation constitutes state aid in some
circumstances. In common with the UK Government and other UK-based
international companies, the Group did not agree with the decision and lodged
a formal appeal with the General Court of the European Union. The Group's
appeal was stayed while the appeals put forward by the UK Government and ITV
plc proceeded. Despite the UK Government appealing the European Commission's
decision, His Majesty's Revenue & Customs ("HMRC') was required to assess
the tax liability which would arise if the decision was not appealed
successfully, which was paid by the Group.
On 8 June 2022 the General Court of the European Union dismissed the appeals
put forward by the UK Government and ITV plc. However, they appealed the
decision to the Court of Justice of the European Union. The Court of Justice
of the European Union held a hearing on the case in January 2024 and the
Advocate-General's opinion was published in April 2024, proposing that the
Court of Justice of the European Union set aside the judgement of the General
Court and annul the decision made by the European Commission. On 19
September 2024, the Court of Justice of the European Union followed the
recommendation of the Advocate-General's opinion and annulled the European
Commission decision. As a result of the Court of Justice of the European
Union decision to annul the European Commission decision, HMRC issued a
reversal notice in March 2025 and refunded the entire amount of $50m,
including interest, in the fourth quarter.
7. Earnings per share
Basic and diluted earnings per share for the three and twelve months ended 30
April 2025 have been calculated based on the profit for the relevant period
and the weighted average number of ordinary shares in issue during that period
(excluding shares held by the Company and the ESOT over which dividends have
been waived). Diluted earnings per share is computed using the result for
the relevant period and the diluted number of shares (ignoring any potential
issue of ordinary shares which would be anti-dilutive). These are calculated
as follows:
Unaudited Audited
Three months to Year to
30 April 30 April
2025 2024 2025 2024
Profit for the financial period ($m) 311.3 324.7 1,510.5 1,598.4
Weighted average number of shares (m) - basic 433.4 436.6 435.9 437.0
- diluted 434.0 439.0 436.9 439.5
Basic earnings per share 71.9¢ 74.4¢ 346.5¢ 365.8¢
Diluted earnings per share 72.0¢ 73.9¢ 345.8¢ 363.7¢
A reconciliation to adjusted earnings per share is included in the Glossary of
Terms on page 34.
8. Dividends
A final dividend in respect of the year ended 30 April 2024 of 89.25¢ (2024:
85.0¢) per share was paid to shareholders during the year resulting in a cash
outflow of $387m (2024: $368m). The interim dividend in respect of the year
ending 30 April 2025 of 36¢ (2024: 15.75¢) per share announced on 10
December 2024 was paid on 7 February 2025 to shareholders and cost $157m
(2024: $68m).
In addition, the directors are proposing a final dividend in respect of the
year ended 30 April 2025 of 72¢ (2024: 89.25¢) per share, reflecting the
Board's decision to rebalance the split between the interim and final
dividend, to broadly one third interim, two thirds final, which will absorb
$308m of shareholders' funds, based on the 428m shares qualifying for dividend
on 16 June 2025. Subject to approval by shareholders, it will be paid on 10
September 2025 to shareholders who are on the register of members on 8 August
2025.
9. Property, plant and equipment
2025 2024
Rental Rental
equipment Total equipment Total
Net book value $m $m $m $m
At 1 May 11,450.8 13,248.5 9,649.1 11,041.1
Exchange differences 48.5 56.4 (13.4) (16.0)
Reclassifications (7.3) - 1.1 -
Additions 1,945.9 2,401.5 3,624.0 4,310.7
Acquisitions 56.0 59.0 440.8 466.9
Disposals (367.7) (412.2) (610.0) (640.6)
Depreciation (1,814.1) (2,121.9) (1,640.8) (1,913.6)
At 30 April 11,312.1 13,231.3 11,450.8 13,248.5
10. Right-of-use assets
2025 2024
Property Other Property Other
Net book value leases leases Total leases leases Total
$m $m $m $m $m $m
At 1 May 2,390.5 35.1 2,425.6 2,184.8 21.2 2,206.0
Exchange differences 4.5 2.2 6.7 (4.1) (0.1) (4.2)
Additions 198.0 4.8 202.8 294.6 21.8 316.4
Acquisitions 28.0 - 28.0 99.2 - 99.2
Remeasurement 85.7 - 85.7 71.8 - 71.8
Disposals (11.4) (1.5) (12.9) (58.5) (1.0) (59.5)
Depreciation (204.6) (8.2) (212.8) (197.3) (6.8) (204.1)
At 30 April 2,490.7 32.4 2,523.1 2,390.5 35.1 2,425.6
Included within depreciation is an impairment charge of $nil (2024: $6m).
11. Lease liabilities
30 April 30 April
2025 2024
$m $m
Current 298.8 273.8
Non-current 2,553.3 2,406.8
2,852.1 2,680.6
12. Borrowings
30 April 30 April
2025 2024
$m $m
Non-current
First priority senior secured bank debt 1,345.7 1,848.0
1.500% senior notes, due August 2026 548.7 547.8
4.375% senior notes, due August 2027 597.6 596.6
4.000% senior notes, due May 2028 597.0 596.0
4.250% senior notes, due November 2029 596.1 595.3
2.450% senior notes, due August 2031 745.3 744.6
5.500% senior notes, due August 2032 739.9 738.8
5.550% senior notes, due May 2033 744.0 743.4
5.950% senior notes, due October 2033 744.6 744.1
5.800% senior notes, due April 2034 841.2 840.5
7,500.1 7,995.1
The senior secured bank debt is secured by way of fixed and floating charges
over substantially all the Group's property, plant and equipment, inventory
and trade receivables and is committed until November 2029. The senior notes
are guaranteed by Ashtead Group plc and all its principal subsidiary
undertakings.
Our debt facilities are committed for the long term, with an average maturity
of six years and a weighted average interest cost (including non-cash
amortisation of deferred debt raising costs) of 5%.
There is one financial performance covenant under the first priority senior
credit facility. That is the fixed charge ratio (comprising EBITDA before
exceptional items less net capital expenditure paid in cash over the sum of
scheduled debt repayments plus cash interest, cash tax payments and dividends
paid in the last twelve months) which, must be equal to, or greater than, 1.0.
This covenant does not apply when availability exceeds $475m. At 30 April
2025, availability under the senior secured bank facility was $3,616m ($2,771m
at 30 April 2024), with an additional $6,194m of suppressed availability,
meaning that the covenant did not apply at 30 April 2025 and is unlikely to
apply in forthcoming quarters.
Fair value of financial instruments
Financial assets and liabilities are measured in accordance with the fair
value hierarchy and assessed as Level 1, 2 or 3 based on the following
criteria:
- Level 1: fair value measurement based on quoted prices (unadjusted)
in active markets for identical assets or liabilities;
- Level 2: fair value measurements derived from inputs other than
quoted prices that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices); and
- Level 3: fair value measurements derived from valuation techniques
that include inputs for the asset or liability that are not based on
observable market data.
Fair value of derivative financial instruments
At 30 April 2025, the Group had no derivative financial instruments. The
embedded prepayment options included within the senior notes are either
closely related to the host debt contract or immaterial and hence, are not
accounted for separately. These loan notes are carried at amortised cost.
Fair value of non-derivative financial assets and liabilities
The table below provides a comparison, by category of the carrying amounts and
the fair values of the Group's non-derivative financial assets and
liabilities.
At 30 April 2025 At 30 April 2024
Book value Fair Book value Fair
value value
$m $m $m $m
Long-term borrowings
- first priority senior secured bank debt Level 1 1,345.7 1,345.7 1,848.0 1,848.0
- 1.500% senior notes Level 1 550.0 528.4 550.0 498.1
- 4.375% senior notes Level 1 600.0 594.9 600.0 571.5
- 4.000% senior notes Level 1 600.0 586.1 600.0 559.9
- 4.250% senior notes Level 1 600.0 579.1 600.0 549.9
- 2.450% senior notes Level 1 750.0 636.9 750.0 596.5
- 5.500% senior notes Level 1 750.0 743.8 750.0 719.9
- 5.550% senior notes Level 1 750.0 740.6 750.0 719.2
- 5.950% senior notes Level 1 750.0 757.8 750.0 739.7
- 5.800% senior notes Level 1 850.0 850.4 850.0 828.3
Total long-term borrowings 7,545.7 7,363.7 8,048.0 7,631.0
Discount on issue of debt (12.4) - (14.0) -
Deferred costs of raising finance (33.2) - (38.9) -
7,500.1 7,363.7 7,995.1 7,631.0
Other financial instruments(1)
Contingent consideration Level 3 18.0 18.0 31.4 31.4
Financial asset investments Level 3 31.5 31.5 57.0 57.0
Cash and cash equivalents Level 1 21.0 21.0 20.8 20.8
( )
(1) The Group's trade and other receivables, trade and other payables,
excluding contingent consideration, and lease liabilities are not shown in the
table above. The carrying amounts of these financial assets and liabilities
approximate their fair values.
Contingent consideration is a Level 3 financial liability. Future
anticipated payments to vendors in respect of contingent consideration are
initially recorded at fair value which is the present value of the expected
cash outflows of the obligations. The obligations are dependent upon the
future financial performance of the businesses acquired. The fair value is
estimated based on internal financial projections prepared in relation to the
acquisition with the contingent consideration discounted to present value
using a discount rate in line with the Group's cost of debt. The movement
since 30 April 2024 can be attributed to $13m of payments (see Note 14) and
$5m released, offset by $1m of discount unwind and $4m of additions through
business acquisitions (see Note 15).
Financial asset investments are measured at fair value and are Level 3
financial assets. These assets are measured at fair value through other
comprehensive income. Their fair values are estimated based on the latest
transaction price and any subsequent investment-specific adjustments. During
the year, one of the Group's investments failed to secure additional funding
and commenced Chapter 7 bankruptcy proceedings in August 2024. As a result,
the Group has estimated the fair value of its investment as $nil and
consequently recognised a movement in the fair value of the equity investment
of $25m through other comprehensive income.
13. Share capital
Ordinary shares of 10p each:
30 April 30 April 30 April 30 April
2025 2024 2025 2024
Number Number $m $m
Issued and fully paid 451,354,833 451,354,833 81.8 81.8
During the year, the Company purchased 6.0m ordinary shares at a total cost of
$352m (£275m) under the Group's share buyback programme announced by the
Company in December 2024, which are held in treasury. At 30 April 2025,
20.1m (April 2024: 14.1m) shares were held by the Company ($1,171m; April
2024: $819m) and a further 0.5m (April 2024: 0.9m) shares were held by the
Company's Employee Share Ownership Trust ($35m; April 2024: $43m).
14. Notes to the cash flow statement
a) Cash flow from operating activities
Year to 30 April
2025 2024
$m $m
Operating profit 2,557.2 2,654.0
Depreciation 2,334.7 2,117.7
Amortisation 114.4 120.9
EBITDA 5,006.3 4,892.6
Profit on disposal of rental equipment (81.1) (223.0)
Profit on disposal of other property, plant and equipment (18.3) (22.0)
Decrease in inventories 15.1 21.2
Increase in trade and other receivables (52.2) (177.1)
Increase in trade and other payables 44.5 2.5
Exchange differences 0.1 (0.7)
Other non-cash movement 28.7 47.5
Cash generated from operations before
changes in rental equipment 4,943.1 4,541.0
b) Analysis of net debt
Net debt consists of total borrowings and lease liabilities less cash and cash
equivalents. Borrowings exclude accrued interest. Non-US dollar
denominated balances are translated to US dollars at rates of exchange ruling
at the balance sheet date.
Non-cash movements
New lease
1 May Cash Exchange Debt Other 30 April
2024 flow movement acquired liabilities movements 2025
$m $m $m $m $m $m $m
Long-term borrowings 7,995.1 (522.7) 17.5 0.1 - 10.1 7,500.1
Lease liabilities 2,680.6 (138.0) 7.5 28.0 274.0 - 2,852.1
Total liabilities from
financing activities 10,675.7 (660.7) 25.0 28.1 274.0 10.1 10,352.2
Cash and cash
equivalents (20.8) 0.2 (0.4) - - - (21.0)
Net debt 10,654.9 (660.5) 24.6 28.1 274.0 10.1 10,331.2
Non-cash movements
New lease
1 May Cash Exchange Debt Other 30 April
2023 flow movement acquired liabilities movements 2024
$m $m $m $m $m $m $m
Long-term borrowings 6,595.1 1,341.3 (5.3) 55.3 - 8.7 7,995.1
Lease liabilities 2,394.3 (133.7) (4.5) 99.2 325.3 - 2,680.6
Total liabilities from
financing activities 8,989.4 1,207.6 (9.8) 154.5 325.3 8.7 10,675.7
Cash and cash
equivalents (29.9) 9.0 0.1 - - - (20.8)
Net debt 8,959.5 1,216.6 (9.7) 154.5 325.3 8.7 10,654.9
Details of the Group's cash and debt are given in Notes 11 and 12 and the
Review of Fourth Quarter, Balance Sheet and Cash Flow accompanying these
condensed consolidated financial statements.
c) Acquisitions
2025 2024
$m $m
Cash consideration paid:
- acquisitions in the period 134.3 845.6
- contingent consideration 13.1 30.0
147.4 875.6
During the year, five businesses were acquired with cash paid of $134m (2024:
$846m), after taking account of net cash acquired of $2m (2024: $6m).
Further details are provided in Note 15.
Contingent consideration of $13m (2024: $30m) was paid relating to prior year
acquisitions.
15. Acquisitions
The Group undertakes bolt-on acquisitions to complement its organic growth
strategy. During the year, the following acquisitions were completed:
i) On 21 May 2024, Sunbelt US acquired the business and assets of RentalMax, LLC
('RentalMax'). RentalMax is a general tool business operating in Illinois.
ii) On 25 June 2024, Sunbelt Canada acquired the business and assets of Wave
Equipment Ltd. ('Wave'). Wave is a general tool business operating in
Ontario.
iii) On 3 December 2024, Sunbelt UK acquired the entire share capital of JLLive
Ltd, JLLighting Limited and DigiSet Limited (together 'JL'). JL is a
specialty business.
iv) On 12 March 2025, Sunbelt US acquired the business and assets of Hawkeye
Equipment Rentals, Inc. ('Hawkeye'). Hawkeye is a general tool business
operating in California.
v) On 16 April 2025, Sunbelt Canada acquired the business and assets of R N L
Rental Network Ltd. ('Rental Network'). Rental Network is a general tool
business operating in British Columbia.
The following table sets out the fair value of the identifiable assets and
liabilities acquired by the Group. The fair values have been determined
provisionally at the balance sheet date.
Fair value
to the Group
$m
Net assets acquired
Trade and other receivables 6.9
Property, plant and equipment
- rental equipment 56.0
- other assets 3.0
Right-of-use assets 28.0
Deferred tax (0.3)
Creditors (1.8)
Debt (0.1)
Lease liabilities (28.0)
Intangible assets 24.7
88.4
Consideration:
- cash paid and due to be paid (net of cash acquired) 137.3
- contingent consideration 4.1
141.4
Goodwill 53.0
The goodwill arising can be attributed to the key management personnel and
workforce of the acquired businesses, the benefits through advancing our
clusters and leveraging cross-selling opportunities, and to the synergies and
other benefits the Group expects to derive from the acquisitions. The
synergies and other benefits include elimination of duplicate costs, improving
utilisation of the acquired rental fleet, using the Group's financial strength
to invest in the acquired business and drive improved returns through a
semi-fixed cost base and the application of the Group's proprietary software
to optimise revenue opportunities. $46m of the goodwill is expected to be
deductible for income tax purposes.
The gross value and the fair value of trade receivables at acquisition was
$7m.
Due to the operational integration of acquired businesses post-acquisition, in
particular due to the merger of some stores, the movement of rental equipment
between stores and investment in the rental fleet, it is not practical to
report the revenue and profit of the acquired businesses post-acquisition.
The revenue and operating profit of these acquisitions from 1 May 2024 to
their date of acquisition was not material.
16. Events after the balance sheet date
On 4 June 2025, Sunbelt US acquired the business and assets of MPC Solutions,
LLC ('MPC'). MPC is a specialty business operating in North America.
The initial accounting for this acquisition is incomplete given the proximity
to the year end. Had this acquisition taken place on 1 May 2024, its
contribution to revenue and operating profit would not have been material.
REVIEW OF FOURTH QUARTER, BALANCE SHEET AND CASH FLOW
Fourth quarter (unaudited)
Segment
Revenue EBITDA(1,2) Profit(1,2)
2025 2024 2025 2024 2025 2024
$m $m $m $m $m $m
North America General Tool 1,498.1 1,600.3 802.1 855.9 452.0 522.8
North America Specialty 810.2 797.3 384.3 351.6 252.3 233.8
UK 221.0 229.9 56.1 62.1 13.8 20.4
Central costs - - (95.2) (128.5) (157.7) (187.2)
2,529.3 2,627.5 1,147.3 1,141.1 560.4 589.8
Financing costs (130.7) (144.2)
Adjusted profit before tax 429.7 445.6
Non-recurring costs (9.6) -
Amortisation (27.9) (28.6)
Profit before taxation 392.2 417.0
Margins as reported
North America General Tool 53.5% 53.5% 30.2% 32.7%
North America Specialty 47.4% 44.1% 31.1% 29.3%
UK 25.4% 27.0% 6.2% 8.9%
Group 45.4% 43.4% 22.2% 22.4%
( )
(1) Segment performance is measured internally excluding central costs which
support the business as a whole. Furthermore, the Group manages debt,
including lease liabilities, centrally and therefore segment profit measures
are presented before the application of lease accounting adjustments in
accordance with IFRS 16 Leases but instead reflect the cash cost incurred in
the period. The impact of lease accounting adjustments are included within
the central costs line item above.
(2) Segment results presented are adjusted EBITDA and adjusted operating
profit. A reconciliation of adjusted measures to statutory measures is
provided in the Glossary of Terms on page 34.
Group revenue for the quarter decreased 4% to $2,529m (2024: $2,628m)
reflecting planned lower sales of used equipment. Adjusted profit before tax
for the quarter decreased to $430m (2024: $446m).
North American General Tool rental only revenue in the quarter was in line
with the prior year, while total revenue was 6% below prior year due to
planned lower sales of used equipment. Adjusted segment EBITDA was $802m
(2024: $856m).
North American Specialty rental only revenue in the quarter was 4% higher than
a year ago, while total revenue was 2% higher than a year ago reflecting the
impact of lower erection and dismantling revenue compared with the prior year.
Adjusted segment EBITDA was $384m (2024: $352m), which benefitted from the
reversal of a receivables provision recognised in the fourth quarter of the
prior year for a customer which has now exited Chapter 11 bankruptcy
protection.
The UK generated rental only revenue in the quarter of $143m (2024: $146m), 2%
lower than the prior year, while total revenue was $221m (2024: $230m).
Adjusted segment EBITDA was $56m (2024: $62m).
Group adjusted EBITDA increased 1% to $1,147m (2024: $1,141m) while adjusted
operating profit decreased 5% to $560m (2024: $590m). After financing costs
of $131m (2024: $144m), Group adjusted profit before tax was $430m (2024:
$446m).
After non-recurring costs of $10m (2024: $nil) and amortisation of $28m (2024:
$29m), statutory profit before taxation was $392m (2024: $417m).
Balance sheet
Property, plant and equipment
Capital expenditure in the year totalled $2,401m (2024: $4,311m) with $1,946m
invested in the rental fleet (2024: $3,624m). Expenditure on rental
equipment was 81% of total capital expenditure with the balance relating to
the delivery vehicle fleet, property improvements and IT equipment. Capital
expenditure by division was:
2025 2024
Replacement Growth Total Total
North America General Tool 909.3 485.2 1,394.5 2,490.3
North America Specialty 285.7 127.4 413.1 915.1
UK 128.1 10.2 138.3 218.6
Total rental equipment 1,323.1 622.8 1,945.9 3,624.0
Delivery vehicles, property improvements & IT equipment 455.6 686.7
Total additions 2,401.5 4,310.7
In the North American General Tool business, $485m of rental equipment capital
expenditure was spent on growth while $909m was invested in replacement of
existing fleet, while in the North American Specialty business, $127m of
rental equipment capital expenditure was spent on growth while $286m was
invested in replacement of existing fleet. The growth proportion is
estimated based on the assumption that replacement capital expenditure in any
period is equal to the original cost of equipment sold. In a period of
inflation, this understates replacement capital expenditure and overstates
growth capital expenditure. Life cycle inflation is c. 20%.
The average age of the Group's serialised rental equipment, which constitutes
the substantial majority of our fleet, at 30 April 2025 was 49 months (2024:
45 months) on an original cost basis. The North America General Tool fleet
had an average age of 48 months (2024: 44 months), the North America Specialty
fleet had an average age of 53 months (2024: 48 months) and the UK fleet had
an average age of 54 months (2024: 50 months).
Rental fleet at original cost
30 April 30 April LTM LTM rental LTM dollar
2025 2024 Average Revenue Utilisation
North America General Tool 12,523 11,940 12,350 5,889 48%
North America Specialty 4,494 4,391 4,501 3,313 74%
UK 1,521 1,414 1,470 778 53%
18,538 17,745 18,321 9,980
Dollar utilisation was 48% for North America General Tool (2024: 51%), 74% for
North America Specialty (2024: 74%) and 53% for the UK (2024: 53%). The
decrease in North America General Tool dollar utilisation is due principally
to lower physical utilisation and fleet inflation.
Trade receivables
Receivable days at 30 April 2025 were 47 days (2024: 50 days). The bad debt
charge for the last twelve months ended 30 April 2025 as a percentage of total
turnover was 0.3% (2024: 0.8%). Trade receivables at 30 April 2025 of
$1,481m (2024: $1,528m) are stated net of allowances for bad debts and credit
notes of $102m (2024: $141m), with the provision representing 6% (2024: 8%) of
gross receivables.
Trade and other payables
Group payable days were 64 days at 30 April 2025 (2024: 60 days) with capital
expenditure related payables totalling $225m (2024: $512m). Payment periods
for purchases other than rental equipment vary between seven and 60 days and
for rental equipment between 30 and 120 days.
Cash flow and net debt
Year to 30 April
2025 2024
$m $m
Adjusted EBITDA 5,021.7 4,892.6
Cash inflow from operations before non-recurring
costs and changes in rental equipment 4,953.5 4,541.0
Cash conversion ratio* 98.6% 92.8%
Rental capital expenditure (2,251.2) (3,759.2)
Payments for non-rental capital expenditure (455.6) (685.6)
Rental equipment disposal proceeds 461.7 831.7
Other property, plant and equipment disposal proceeds 61.2 47.5
Tax paid (net) (424.8) (245.8)
Financing costs (554.9) (513.1)
Free cash flow 1,789.9 216.5
Non-recurring costs (10.4) -
Business acquisitions (147.4) (875.6)
Business disposals - 1.9
Financial asset investments - (15.0)
Total cash generated/(absorbed) 1,632.1 (672.2)
Dividends (544.2) (436.1)
Purchase of own shares by the ESOT (85.5) (29.9)
Purchase of own shares by the Company (341.9) (78.4)
Decrease/(increase) in net debt due to cash flow 660.5 (1,216.6)
* Cash inflow from operations before non-recurring costs and changes in rental
equipment as a percentage of adjusted EBITDA.
Cash inflow from operations before non-recurring costs and the net investment
in the rental fleet was $4,954m (2024: $4,541m). The conversion ratio for
the period was 99% (2024: 93%).
Total payments for capital expenditure (rental equipment and other PPE) during
the year were $2,707m (2024: $4,445m). Disposal proceeds received totalled
$523m (2024: $879m), giving net payments for capital expenditure of $2,184m in
the year (2024: $3,566m). Financing costs paid totalled $555m (2024: $513m)
while tax payments (net) were $425m (2024: $246m). Financing costs paid
typically differ from the charge in the income statement due to the timing of
interest payments in the period and non-cash interest charges.
Accordingly, the Group generated free cash flow of $1,790m (2024: $216m) and,
after non-recurring costs of $10m (2024: $nil), acquisition and investment
related expenditure of $147m (2024: $889m), a cash flow of $1,632m
(2024: outflow of $672m), before returns to shareholders.
Net debt
2025 2024
$m $m
First priority senior secured bank debt 1,345.7 1,848.0
1.500% senior notes, due 2026 548.7 547.8
4.375% senior notes, due 2027 597.6 596.6
4.000% senior notes, due 2028 597.0 596.0
4.250% senior notes, due 2029 596.1 595.3
2.450% senior notes, due 2031 745.3 744.6
5.500% senior notes, due 2032 739.9 738.8
5.550% senior notes, due 2033 744.0 743.4
5.950% senior notes, due 2033 744.6 744.1
5.800% senior notes, due 2034 841.2 840.5
Total external borrowings 7,500.1 7,995.1
Lease liabilities 2,852.1 2,680.6
Total gross debt 10,352.2 10,675.7
Cash and cash equivalents (21.0) (20.8)
Total net debt 10,331.2 10,654.9
Net debt at 30 April 2025 was $10,331m with the decrease since 30 April 2024
reflecting the cash inflow set out above, partially offset by additional lease
commitments as we continue our greenfield and bolt-on expansion. The Group's
adjusted EBITDA for the year ended 30 April 2025 was $5,022m. Excluding the
impact of IFRS 16, the ratio of net debt to adjusted EBITDA was 1.6 times
(2024: 1.7 times) on a constant currency and a reported basis as at 30 April
2025. Including the impact of IFRS 16, the ratio of net debt to adjusted
EBITDA was 2.1 times (2024: 2.2 times) as at 30 April 2025.
Financial risk management
The Group's trading and financing activities expose it to various financial
risks that, if left unmanaged, could adversely impact current or future
earnings. Although not necessarily mutually exclusive, these financial risks
are categorised separately according to their different generic risk
characteristics and include market risk (foreign currency risk and interest
rate risk), credit risk and liquidity risk.
Market risk
The Group's activities expose it primarily to interest rate and currency risk.
Interest rate risk is monitored on a continuous basis and managed, where
appropriate, through the use of interest rate swaps whereas the use of forward
foreign exchange contracts to manage currency risk is considered on an
individual non-trading transaction basis. The Group is not exposed to
commodity price risk or equity price risk as defined in IFRS 7.
Interest rate risk
The Group has fixed and variable rate debt in issue with 82% of the drawn debt
at a fixed rate as at 30 April 2025, excluding lease liabilities. The
Group's accounting policy requires all borrowings to be held at amortised
cost. As a result, the carrying value of fixed rate debt is unaffected by
changes in credit conditions in the debt markets and there is therefore no
exposure to fair value interest rate risk. The Group's debt that bears
interest at a variable rate comprises all outstanding borrowings under the
senior secured credit facility. Pricing is based on leverage and average
availability according to a grid, varying from the applicable interest rate
plus 125bp to 137.5bp. The applicable interest rate is based on SOFR for US
dollar loans, CORRA for Canadian dollar loans and SONIA for sterling loans.
At 30 April 2025, the borrowing rate was the applicable interest rate plus
125bp.
The Group periodically utilises interest rate swap agreements to manage and
mitigate its exposure to changes in interest rates. However, during the year
ended and as at 30 April 2025, the Group had no such swap agreements
outstanding. The Group may, at times, hold cash and cash equivalents, which
earn interest at a variable rate.
At 30 April 2025, based upon the amount of variable rate debt outstanding, the
Group's pre-tax profits would change by approximately $13m for each one
percentage point change in interest rates applicable to the variable rate debt
and, after tax effects, equity would change by approximately $10m.
Currency risk
Currency risk is predominantly translation risk as there are no significant
transactions in the ordinary course of business that take place between
foreign entities. The Group's reporting currency is US dollars. The
majority of our assets, liabilities, revenue and costs are denominated in US
dollars, but Canadian dollars and sterling make up 27% of our net assets.
Fluctuations in the value of Canadian dollars and pounds sterling with
respect to US dollars may have an impact on our financial condition and
results of operations as reported in US dollars. The Group's financing is
arranged such that the majority of its debt and interest expense is in US
dollars. At 30 April 2025, 90% of its debt (including lease liabilities) was
denominated in US dollars.
The Group's exposure to exchange rate movements on trading transactions is
limited. All Group companies invoice revenue in their respective local
currency and generally incur expense and purchase assets in their local
currency. Consequently, the Group does not routinely hedge either forecast
foreign exchange exposures or the impact of exchange rate movements on the
translation of overseas profits into dollars. Where the Group does hedge, it
maintains appropriate hedging documentation. Foreign exchange risk on
significant non-trading transactions is considered on an individual basis.
Based on the current currency mix of our profits and on current sterling and
Canadian and US dollar debt levels, interest and exchange rates at 30 April
2025, a 1% change in the US dollar to sterling and Canadian dollar exchange
rates would impact adjusted pre-tax profit by $0.7m and equity by
approximately $21m.
Credit risk
The Group's principal financial assets are cash and bank balances and trade
and other receivables. The Group's credit risk is primarily attributable to
its trade receivables. The amounts presented in the balance sheet are net of
allowances for doubtful receivables. The credit risk on liquid funds and
derivative financial instruments is limited because the counterparties are
banks with high credit ratings assigned by international credit rating
agencies.
The Group has a large number of unrelated customers, serving over 900,000
during the financial year. Each business segment manages its own exposure to
credit risk according to the economic circumstances and characteristics of the
markets they serve. The Group believes that management of credit risk on a
devolved basis enables it to assess and manage credit risk more effectively.
However, broad principles of credit risk management practice are observed
across the Group, such as the use of credit reference agencies and the
maintenance of credit control functions.
Liquidity risk
Liquidity risk is the risk that the Group could experience difficulties in
meeting its commitments to creditors as financial liabilities fall due for
payment.
The Group uses both short and long-term cash forecasts to assist in monitoring
cash flow requirements ensuring sufficient cash is available to meet
operational needs. The Group monitors available facilities against forward
requirements on a regular basis.
The Group generates significant free cash flow (defined as cash flow from
operations less capital expenditure net of proceeds of asset disposals,
interest paid and tax paid). This free cash flow before investment is
available to the Group to invest in growth capital expenditure, acquisitions,
dividend payments and other returns to shareholders or to reduce debt.
In addition to the strong free cash flow from normal trading activities,
additional liquidity is available through the Group's senior secured debt
facility. At 30 April 2025, availability under the $4.75 billion facility
was $3,616m ($2,771m at 30 April 2024), which compares with the threshold of
$475m, above which the covenant does not apply.
Principal risks and uncertainties
The Group faces a number of risks and uncertainties in its day-to-day
operations and it is management's role to mitigate and manage these risks.
The Board has established a formal risk management process which has
identified the following principal risks and uncertainties which could affect
employees, operations, revenue, profits, cash flows and assets of the Group.
Economic conditions
Potential impact
In the longer term, there is a link between levels of economic activity and
demand for our services. The most significant end market which affects our
business is construction. The construction industry is cyclical and
typically lags the general economic cycle by between 12 and 24 months.
The economic uncertainties resulting from the impact of pandemics is
considered as part of this risk.
Mitigation
· Prudent management through the different phases of the cycle.
· Flexibility in the business model.
· Capital structure and debt facilities arranged in recognition of the
cyclical nature of our market and able to withstand market shocks.
Change
Our business continues to be well positioned to benefit from supportive end
markets. However, while market forecasts are predicting continued growth
both in terms of starts and the rental market, supported by the emergence of
'mega projects', there remains some uncertainty and potential volatility in
end market conditions, including arising from the uncertainty associated with
tariffs. At all times, we remain cognisant of market dynamics and
uncertainties to ensure that we take actions to ensure the Group is positioned
to take advantage of opportunities.
Competition
Potential impact
The already competitive market could become even more competitive and we could
suffer increased competition from large national competitors or smaller
regional or local companies resulting in reduced market share and lower
revenue.
This could negatively affect rental rates and physical utilisation.
Continuing industry consolidation could also have a similar effect.
Mitigation
· Create commercial advantage by providing the highest level of service,
consistently and at a price which offers value.
· Differentiation of service.
· Enhance the barriers to entry to newcomers provided by our platform:
industry-leading technology, experienced personnel and a broad network and
equipment fleet.
· Regularly estimate and monitor our market share and track the
performance of our competitors.
Change
Our markets continue to be competitive but the big continue to get bigger.
We have a 11% market share in North America and a 10% market share in the UK.
Cyber security
Potential impact
A cyber-attack or serious uncured failure in our systems could result in us
being unable to deliver service to our customers and / or the loss of data.
In particular, we are heavily dependent on technology for the smooth running
of our business given the large number of both units of equipment we rent and
our customers. As a result, we could suffer reputational loss, revenue loss
and financial penalties.
This is the most significant factor in our business continuity planning.
Mitigation
· Stringent policies surrounding security, user access, change control
and the ability to download and install software.
· Testing of cyber security including red team exercises, system
penetration testing and internal phishing and other training exercises
undertaken.
· Use of antivirus and malware software, firewalls, email scanning and
internet monitoring as an integral part of our security plan.
· Use of firewalls and encryption to protect systems and any connections
to third parties.
· Use of multi-factor authentication.
· Continued focus on development of IT strategy taking advantage of cloud
technology available.
· Separate near-live back-up data centres which are designed to be able
to provide the necessary services in the event of a failure at a primary site.
Change
The Group remains vigilant with regards to cyber security, with a significant
and ongoing investment in resource and tooling to maintain and where
appropriate, enhance our posture. As part of these activities, we consider
the risks arising from the continuing evolution of artificial intelligence
tools. Nevertheless, cyber security remains a continually evolving area and
a priority for the Group.
In relation to business continuity, our plans have been subject to continued
review and update during the year and our disaster recovery plans are tested
regularly.
Health and safety
Potential impact
A failure to comply with laws and regulations governing health and safety and
ensure the highest standards of health and safety across the Group could
result in accidents which may result in injury to or fatality of an
individual, claims against the Group and/or damage to our reputation.
Mitigation
· Maintain appropriate health and safety policies and procedures
regarding the need to comply with laws and regulations and to reasonably guard
our employees against the risk of injury.
· Induction and training programmes reinforce health and safety policies.
· Programmes to support our customers exercising their responsibility to
their own workforces when using our equipment.
· Maintain appropriate insurance coverage.
Change
Health and safety remains a key focus area for the Group and an area of
continuous improvement in order to consider what actions can be implemented to
further reduce the risks within our business.
In terms of reportable incidents, the TRIR was 0.89 (2024: 1.14) in North
America General Tool and 0.54 (2024: 0.53) in North America Specialty. The
RIDDOR reportable rate was 0.14 (2024: 0.19) in the UK.
People and culture
Potential impact
Retaining and attracting good people is key to delivering superior performance
and customer service and maintaining and enhancing our culture.
Excessive staff turnover is likely to impact on our ability to maintain the
appropriate quality of service to our customers and would ultimately impact
our financial performance adversely.
At a leadership level, succession planning is required to ensure the Group can
continue to inspire the right culture, leadership and behaviours and meet its
strategy objectives. Furthermore, it is important that our remuneration
policies reflect the Group's North American focus and enable us to retain and
enhance our strong leadership team.
Mitigation
· Provide well-structured and competitive reward and benefit packages
that ensure our ability to attract and retain the employees we need.
· Ensure that our staff have the right working environment and equipment
to enable them to do the best job possible and maximise their satisfaction at
work.
· Invest in training and career development opportunities for our people
to support them in their careers.
· Ensure succession plans are in place and reviewed regularly which meet
the ongoing needs of the Group.
Change
Recruiting, retention and training continue to be key priorities for the
business.
Our compensation and incentive programmes have continued to evolve to reflect
market conditions, the economic environment and the results of our employee
engagement surveys.
Inclusion programmes are established across the business to enhance our
efforts to attract and retain the best people.
Environmental
Potential impact
As part of Sunbelt 4.0, the Group has made a long-term commitment to reduce
its Scope 1 and 2 carbon intensity by 50% by 2034, compared to a baseline of
2024, on a journey to Net Zero by 2050. Failure to achieve these goals
could adversely impact the Group and its stakeholders.
In terms of the Group's assessment of the broader environmental impacts of our
activities, we also consider the upstream and downstream impacts of our
operations and note that a significant part of our Scope 3 emissions arises
from our rental fleet, which today is reliant on diesel engines. Over time,
'greener' alternatives will become available as technology advances. If we
do not remain at the forefront of technological advances, and invest in the
latest equipment, our rental fleet could become obsolete.
In addition, we need to comply with the numerous laws governing environmental
protection matters. These laws regulate such issues as wastewater, storm
water, solid and hazardous wastes and materials, and air quality. Breaches
potentially create hazards to our employees, damage to our reputation and
expose the Group to, amongst other things, the cost of investigating and
remediating contamination and also fines and penalties for non-compliance.
Mitigation
· Policies and procedures in place at all our stores regarding the need
to adhere to local laws and regulations.
· Procurement policies reflect the need for the latest available
emissions management and fuel efficiency tools in our fleet.
· Collaboration with key suppliers to develop and pilot new technologies.
· Lower carbon vehicle transition plan.
· Real estate and facility standards to reduce emissions from our
operations.
· Monitoring and reporting of GHG emissions.
Change
The work of the Health, Safety and Environmental departments, and the
Sustainability and operational audit teams, continue to assess environmental
compliance.
Our 2023/24 Scope 1 and 2 GHG emissions have been independently validated, and
we will obtain assurance over our 2024/25 Scope 1 and 2 data prior to the
publication of the Group's 2024/25 Sustainability Report
In 2024/25 our Scope 1 and 2 GHG emission intensity ratios reduced to 40.6
(2024: 42.2).
Laws and regulations
Potential impact
Breaches of laws or regulations governing the Group's activities could result
in criminal prosecution, substantial claims and loss of reputation.
Mitigation
· Maintaining a legal function to oversee management of these risks and
to achieve compliance with relevant legislation.
· Group-wide modern slavery, business ethics and ethical sourcing
policies and whistle-blowing arrangements.
· Evolving policies and practices to take account of changes in legal
obligations.
· Training and induction programmes ensure our staff receive appropriate
training and briefing on the relevant policies.
Change
We monitor regulatory and legislative changes to ensure our policies and
practices reflect them and we comply with relevant legislation.
Our whistle-blowing arrangements are well established and the Company
Secretary reports matters arising to the Audit Committee and the Board during
the course of the year.
During the year 3,952 people in North America and 676 people in the UK
underwent induction training. In addition, training programmes were
undertaken in safety and business ethics.
OPERATING STATISTICS
Number of rental stores Staff numbers
2025 2024 2025 2024
North America - General Tool 781 752 12,695 12,956
North America - Specialty 588 569 6,444 6,968
UK 191 190 4,326 4,384
Central - - 1,576 1,650
Group 1,560 1,511 25,041 25,958
GLOSSARY OF TERMS
The glossary of terms below sets out definitions of terms used throughout this
announcement. Included are a number of alternative performance measures
('APMs') which the directors have adopted in order to provide additional
useful information on the underlying trends, performance and position of the
Group. The directors use these measures, which are common across the
industry, for planning and reporting purposes. These measures are also used
in discussions with the investment analyst community and credit rating
agencies. The APMs are not defined by IFRS and therefore may not be directly
comparable with other companies' APMs and should not be considered superior to
or a substitute for IFRS measures.
Term Closest equivalent statutory measure Definition and purpose
Adjusted EBITDA Operating profit Adjusted EBITDA is operating profit before depreciation, amortisation and
non-recurring costs associated with the move of the Group's primary listing to
the US.
Fourth quarter Twelve months
2025 2024 2025 2024
$m $m $m $m
Operating profit 522.9 561.2 2,557.2 2,654.0
Depreciation 586.9 551.3 2,334.7 2,117.7
Amortisation 27.9 28.6 114.4 120.9
EBITDA 1,137.7 1,141.1 5,006.3 4,892.6
Non-recurring costs associated with relisting:
- Staff costs 2.2 - 4.0 -
- Other operating costs 7.4 - 11.4 -
Adjusted EBITDA 1,147.3 1,141.1 5,021.7 4,892.6
Adjusted operating profit Operating profit Adjusted operating profit is operating profit before amortisation and
non-recurring costs associated with the move of the Group's primary listing to
the US.
Fourth quarter Twelve months
2025 2024 2025 2024
$m $m $m $m
Operating profit 522.9 561.2 2,557.2 2,654.0
Amortisation 27.9 28.6 114.4 120.9
Non-recurring costs associated with relisting:
- Staff costs 2.2 - 4.0 -
- Other operating costs 7.4 - 11.4 -
Adjusted operating profit 560.4 589.8 2,687.0 2,774.9
Adjusted profit before tax Profit before tax Adjusted profit before tax is profit before tax, amortisation and
non-recurring costs associated with the move of the Group's primary listing to
the US.
Fourth quarter Twelve months
2025 2024 2025 2024
$m $m $m $m
Profit before tax 392.2 417.0 1,998.2 2,109.5
Amortisation 27.9 28.6 114.4 120.9
Non-recurring costs associated with relisting:
- Staff costs 2.2 - 4.0 -
- Other operating costs 7.4 - 11.4 -
Adjusted profit before tax 429.7 445.6 2,128.0 2,230.4
Adjusted profit after tax Profit after tax Adjusted profit after tax is profit after tax before amortisation and
non-recurring costs associated with the move of the Group's primary listing to
the US.
Fourth quarter Twelve months
2025 2024 2025 2024
$m $m $m $m
Profit after tax 311.3 324.7 1,510.5 1,598.4
Amortisation 27.9 28.6 114.4 120.9
Non-recurring costs associated with relisting:
- Staff costs 2.2 - 4.0 -
- Other operating costs 7.4 - 11.4 -
Tax on adjusting items (8.1) (7.1) (29.8) (30.2)
Adjusted profit after tax 340.7 346.2 1,610.5 1,689.1
Adjusted earnings per share Earnings per share Adjusted earnings per share is earnings per share before and non-recurring
costs associated with the move to a US primary listing.
Fourth quarter Twelve months
2025 2024 2025 2024
ȼ ȼ ȼ ȼ
Earnings per share (basic) 71.9 74.4 346.5 365.8
Amortisation 6.5 6.5 26.3 27.6
Non-recurring costs associated with relisting:
- Staff costs 0.5 - 0.9 -
- Other operating costs 1.7 - 2.6 -
Tax on adjusting items (1.9) (1.6) (6.8) (6.9)
Adjusted earnings per share (basic) 78.7 79.3 369.5 386.5
Adjusted segment EBITDA Operating profit Adjusted segment EBITDA is operating profit by segment before depreciation,
amortisation and non-recurring costs associated with the move of the Group's
primary listing to the US. Adjusted segment EBITDA is calculated excluding
the impact of
IFRS 16. A reconciliation of adjusted segment EBITDA to operating profit is
shown below:
Fourth quarter Twelve months
2025 2024 2025 2024
$m $m $m $m
Adjusted segment EBITDA
- North America - General Tool 802.1 855.9 3,477.7 3,653.3
- North America - Specialty 384.3 351.6 1,672.1 1,438.4
- UK 56.1 62.1 239.7 235.0
Impact of IFRS 16 71.9 63.9 278.4 254.3
Other central costs (167.1) (192.4) (646.2) (688.4)
Adjusted EBITDA 1,147.3 1,141.1 5,021.7 4,892.6
Non-recurring costs (9.6) - (15.4) -
EBITDA 1,137.7 1,141.1 5,006.3 4,892.6
Depreciation (586.9) (551.3) (2,334.7) (2,117.7)
Amortisation (27.9) (28.6) (114.4) (120.9)
Operating profit 522.9 561.2 2,557.2 2,654.0
Adjusted segment operating profit Operating profit Adjusted segment operating profit is operating profit by segment before
depreciation, amortisation and non-recurring costs associated with the move of
the Group's primary listing to the US. Adjusted segment EBITDA is calculated
excluding the impact of
IFRS 16. A reconciliation of adjusted segment EBITDA to operating profit is
shown below:
Fourth quarter Twelve months
2025 2024 2025 2024
$m $m $m $m
Adjusted segment operating profit
- North America - General Tool 452.0 522.8 2,093.4 2,394.3
- North America - Specialty 252.3 233.8 1,134.5 968.4
- UK 13.8 20.4 68.6 71.4
Impact of IFRS 16 19.1 13.6 73.7 58.6
Other central costs (176.8) (200.8) (683.2) (717.8)
Adjusted operating profit 560.4 589.8 2,687.0 2,774.9
Non-recurring costs (9.6) - (15.4) -
Amortisation (27.9) (28.6) (114.4) (120.9)
Operating profit 522.9 561.2 2,557.2 2,654.0
Free cash flow Net cash generated from operating activities Free cash flow is net cash generated from operating activities adjusted for
non-recurring costs less non-rental net property, plant and equipment
expenditure. Non-rental net property, plant and equipment expenditure
comprises payments for non-rental capital expenditure less disposal proceeds
received in relation to non-rental asset disposals.
2025 2024
$m $m
Net cash generated from operating activities 2,174 855
Non-recurring costs 10 -
Payments for non-rental property, plant and equipment
(455) (686)
Proceeds from disposal of non-rental property,
plant and equipment 61 47
Free cash flow 1,790 216
This measure shows the cash retained by the Group prior to non-recurring
costs, discretionary expenditure on acquisitions and returns to
shareholders.
Growth at constant exchange rates None Calculated by applying the current period exchange rate to the comparative
period result. The relevant foreign currency exchange rates are provided
within Note 2, Basis of preparation, to the financial statements. This
measure is used as a means of eliminating the effects of foreign exchange rate
movements on the period-on-period changes in reported results.
2025 2024 %
$m $m
Rental revenue
As reported 9,980 9,630 4%
Retranslation effect - (3)
At constant currency 9,980 9,627 4%
Adjusted profit before tax
As reported 2,128 2,230 -5%
Retranslation effect - (1)
At constant currency 2,128 2,229 -5%
Leverage None Leverage calculated at constant exchange rates uses the period end exchange
rate for the relevant period and is determined as net debt divided by last
12-month ('LTM') adjusted EBITDA.
2025 2024
Excluding IFRS 16 Including IFRS 16 Excluding IFRS 16 Including IFRS 16
Net debt ($m)
As reported and 7,517 10,331 8,014 10,655
at constant currency
Adjusted EBITDA ($m)
As reported 4,743 5,022 4,637 4,893
Retranslation effect 11 12 (5) (6)
At constant currency 4,754 5,034 4,632 4,887
Leverage
As reported 1.6 2.1 1.7 2.2
At constant currency 1.6 2.1 1.7 2.2
This measure is used to provide an indication of the strength of the Group's
balance sheet and is widely used by investors and credit rating agencies. It
also forms part of the remuneration targets of the Group and has been
identified as one of the Group's key performance indicators.
Return on Investment ('RoI') None LTM adjusted operating profit divided by the LTM average of the sum of net
tangible and intangible fixed assets, plus net working capital but excluding
net debt and tax.
RoI is calculated excluding the impact of IFRS 16.
RoI is used by management to help inform capital allocation decisions within
the business and has been identified as one of the Group's key performance
indicators. It also forms part of the remuneration targets of the Group.
A reconciliation of Group RoI is provided below:
2025 2024
$m $m
Adjusted operating profit 2,687 2,775
IFRS 16 impact (74) (59)
Adjusted operating profit (excluding IFRS 16) 2,613 2,716
Average net assets 17,989 16,657
Return on investment 15% 16%
RoI for the businesses is calculated in the same way, but excludes goodwill
and intangible assets:
North America General Tool North America Specialty $m
$m
UK
$m
Adjusted segment operating profit (excluding IFRS 16)
2,093 1,135 69
Average net assets, excluding goodwill and intangibles
10,378 3,776 1,053
Return on investment 20% 30% 7%
Adjusted operating profit
Operating profit
Adjusted operating profit is operating profit before amortisation and
non-recurring costs associated with the move of the Group's primary listing to
the US.
Fourth quarter Twelve months
2025 2024 2025 2024
$m $m $m $m
Operating profit 522.9 561.2 2,557.2 2,654.0
Amortisation 27.9 28.6 114.4 120.9
Non-recurring costs associated with relisting:
- Staff costs 2.2 - 4.0 -
- Other operating costs 7.4 - 11.4 -
Adjusted operating profit 560.4 589.8 2,687.0 2,774.9
Adjusted profit before tax
Profit before tax
Adjusted profit before tax is profit before tax, amortisation and
non-recurring costs associated with the move of the Group's primary listing to
the US.
Fourth quarter Twelve months
2025 2024 2025 2024
$m $m $m $m
Profit before tax 392.2 417.0 1,998.2 2,109.5
Amortisation 27.9 28.6 114.4 120.9
Non-recurring costs associated with relisting:
- Staff costs 2.2 - 4.0 -
- Other operating costs 7.4 - 11.4 -
Adjusted profit before tax 429.7 445.6 2,128.0 2,230.4
Adjusted profit after tax
Profit after tax
Adjusted profit after tax is profit after tax before amortisation and
non-recurring costs associated with the move of the Group's primary listing to
the US.
Fourth quarter Twelve months
2025 2024 2025 2024
$m $m $m $m
Profit after tax 311.3 324.7 1,510.5 1,598.4
Amortisation 27.9 28.6 114.4 120.9
Non-recurring costs associated with relisting:
- Staff costs 2.2 - 4.0 -
- Other operating costs 7.4 - 11.4 -
Tax on adjusting items (8.1) (7.1) (29.8) (30.2)
Adjusted profit after tax 340.7 346.2 1,610.5 1,689.1
Adjusted earnings per share
Earnings per share
Adjusted earnings per share is earnings per share before and non-recurring
costs associated with the move to a US primary listing.
Fourth quarter Twelve months
2025 2024 2025 2024
ȼ ȼ ȼ ȼ
Earnings per share (basic) 71.9 74.4 346.5 365.8
Amortisation 6.5 6.5 26.3 27.6
Non-recurring costs associated with relisting:
- Staff costs 0.5 - 0.9 -
- Other operating costs 1.7 - 2.6 -
Tax on adjusting items (1.9) (1.6) (6.8) (6.9)
Adjusted earnings per share (basic) 78.7 79.3 369.5 386.5
Adjusted segment EBITDA
Operating profit
Adjusted segment EBITDA is operating profit by segment before depreciation,
amortisation and non-recurring costs associated with the move of the Group's
primary listing to the US. Adjusted segment EBITDA is calculated excluding
the impact of
IFRS 16. A reconciliation of adjusted segment EBITDA to operating profit is
shown below:
Fourth quarter Twelve months
2025 2024 2025 2024
$m $m $m $m
Adjusted segment EBITDA
- North America - General Tool 802.1 855.9 3,477.7 3,653.3
- North America - Specialty 384.3 351.6 1,672.1 1,438.4
- UK 56.1 62.1 239.7 235.0
Impact of IFRS 16 71.9 63.9 278.4 254.3
Other central costs (167.1) (192.4) (646.2) (688.4)
Adjusted EBITDA 1,147.3 1,141.1 5,021.7 4,892.6
Non-recurring costs (9.6) - (15.4) -
EBITDA 1,137.7 1,141.1 5,006.3 4,892.6
Depreciation (586.9) (551.3) (2,334.7) (2,117.7)
Amortisation (27.9) (28.6) (114.4) (120.9)
Operating profit 522.9 561.2 2,557.2 2,654.0
Adjusted segment operating profit
Operating profit
Adjusted segment operating profit is operating profit by segment before
depreciation, amortisation and non-recurring costs associated with the move of
the Group's primary listing to the US. Adjusted segment EBITDA is calculated
excluding the impact of
IFRS 16. A reconciliation of adjusted segment EBITDA to operating profit is
shown below:
Fourth quarter Twelve months
2025 2024 2025 2024
$m $m $m $m
Adjusted segment operating profit
- North America - General Tool 452.0 522.8 2,093.4 2,394.3
- North America - Specialty 252.3 233.8 1,134.5 968.4
- UK 13.8 20.4 68.6 71.4
Impact of IFRS 16 19.1 13.6 73.7 58.6
Other central costs (176.8) (200.8) (683.2) (717.8)
Adjusted operating profit 560.4 589.8 2,687.0 2,774.9
Non-recurring costs (9.6) - (15.4) -
Amortisation (27.9) (28.6) (114.4) (120.9)
Operating profit 522.9 561.2 2,557.2 2,654.0
Free cash flow
Net cash generated from operating activities
Free cash flow is net cash generated from operating activities adjusted for
non-recurring costs less non-rental net property, plant and equipment
expenditure. Non-rental net property, plant and equipment expenditure
comprises payments for non-rental capital expenditure less disposal proceeds
received in relation to non-rental asset disposals.
2025 2024
$m $m
Net cash generated from operating activities 2,174 855
Non-recurring costs 10 -
Payments for non-rental property, plant and equipment
(455) (686)
Proceeds from disposal of non-rental property,
plant and equipment 61 47
Free cash flow 1,790 216
This measure shows the cash retained by the Group prior to non-recurring
costs, discretionary expenditure on acquisitions and returns to
shareholders.
Growth at constant exchange rates
None
Calculated by applying the current period exchange rate to the comparative
period result. The relevant foreign currency exchange rates are provided
within Note 2, Basis of preparation, to the financial statements. This
measure is used as a means of eliminating the effects of foreign exchange rate
movements on the period-on-period changes in reported results.
2025 2024 %
$m $m
Rental revenue
As reported 9,980 9,630 4%
Retranslation effect - (3)
At constant currency 9,980 9,627 4%
Adjusted profit before tax
As reported 2,128 2,230 -5%
Retranslation effect - (1)
At constant currency 2,128 2,229 -5%
Leverage
None
Leverage calculated at constant exchange rates uses the period end exchange
rate for the relevant period and is determined as net debt divided by last
12-month ('LTM') adjusted EBITDA.
2025 2024
Excluding IFRS 16 Including IFRS 16 Excluding IFRS 16 Including IFRS 16
Net debt ($m)
As reported and 7,517 10,331 8,014 10,655
at constant currency
Adjusted EBITDA ($m)
As reported 4,743 5,022 4,637 4,893
Retranslation effect 11 12 (5) (6)
At constant currency 4,754 5,034 4,632 4,887
Leverage
As reported 1.6 2.1 1.7 2.2
At constant currency 1.6 2.1 1.7 2.2
This measure is used to provide an indication of the strength of the Group's
balance sheet and is widely used by investors and credit rating agencies. It
also forms part of the remuneration targets of the Group and has been
identified as one of the Group's key performance indicators.
Return on Investment ('RoI')
None
LTM adjusted operating profit divided by the LTM average of the sum of net
tangible and intangible fixed assets, plus net working capital but excluding
net debt and tax.
RoI is calculated excluding the impact of IFRS 16.
RoI is used by management to help inform capital allocation decisions within
the business and has been identified as one of the Group's key performance
indicators. It also forms part of the remuneration targets of the Group.
A reconciliation of Group RoI is provided below:
2025 2024
$m $m
Adjusted operating profit 2,687 2,775
IFRS 16 impact (74) (59)
Adjusted operating profit (excluding IFRS 16) 2,613 2,716
Average net assets 17,989 16,657
Return on investment 15% 16%
RoI for the businesses is calculated in the same way, but excludes goodwill
and intangible assets:
North America General Tool North America Specialty $m
$m
UK
$m
Adjusted segment operating profit (excluding IFRS 16)
2,093 1,135 69
Average net assets, excluding goodwill and intangibles
10,378 3,776 1,053
Return on investment 20% 30% 7%
Other terms used within this announcement include:
· Adjusted: adjusted results are results stated before
non-recurring costs associated with the move of the Group's primary listing to
the US and the amortisation of acquired intangibles. A reconciliation is
shown above.
· Availability: represents the headroom on a given date under the
terms of our $4.75bn asset-backed senior bank facility, taking account of
current borrowings.
· Capital expenditure: represents additions to rental equipment and
other property, plant and equipment (excluding assets acquired through a
business combination).
· Cash conversion ratio: represents cash flow from operations
before non-recurring costs and changes in rental equipment as a percentage of
Adjusted EBITDA. Details are provided within the Review of Fourth Quarter,
Balance Sheet and Cash Flow section.
· Dollar utilisation: dollar utilisation is trailing 12-month
rental revenue divided by average fleet size at original (or 'first') cost
measured over a 12-month period. Dollar utilisation has been identified as
one of the Group's key performance indicators. Details are shown within the
Review of Fourth Quarter, Balance Sheet and Cash Flow section.
· EBITDA and EBITDA margin: EBITDA is earnings before interest,
tax, depreciation and amortisation. A reconciliation of EBITDA to profit
before tax is shown on the income statement. EBITDA margin is calculated as
EBITDA divided by revenue. Progression in EBITDA margin is an important
indicator of the Group's performance and this has been identified as one of
the Group's key performance indicators.
· Fleet age: original cost weighted age of serialised rental
assets. Serialised rental assets constitute the substantial majority of our
fleet.
· Fleet on rent: quantity measured at original cost of our rental
fleet on rent. Fleet on rent has been identified as one of the Group's key
performance indicators.
· Net debt: net debt is total borrowings (bank, bonds) and lease
liabilities less cash balances, as reported. This measure is used to provide
an indication of the Group's overall level of indebtedness and is widely used
by investors and credit rating agencies. An analysis of net debt is provided
in Note 14.
· Operating profit and operating profit margin: Operating profit is
earnings before interest and tax. A reconciliation of operating profit to
profit before tax is shown on the income statement. Operating profit margin
is calculated as operating profit divided by revenue. Progression in
operating profit margin is an important indicator of the Group's performance.
· Organic: organic measures comprise all locations, excluding
locations arising from a bolt-on acquisition completed after the start of the
comparative financial period.
· Rental only revenue: rental revenue excluding loss damage waiver,
environmental fees, erection and dismantling revenue and revenue from rental
equipment delivery and collection.
· Same-store: same-stores are those locations which were open at
the start of the comparative financial period.
· Segment profit: operating profit before amortisation and
non-recurring costs by segment.
· Suppressed availability: represents the amount on a given date
that the asset base exceeds the facility size under the terms of our $4.75bn
asset-backed senior bank facility.
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. END FR DQLFFEQLEBBBRecent news on Ashtead
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