Ashtead drops as investors take profits after strong full-year results

16th Jun 2015 07:08

Ashtead fell nearly 3% on Tuesday, with traders and analysts pointing to profit-taking after the company beat expectations and posted a 33% rise in full-year pre-tax profit.The industrial equipment hire company reported pre-tax profit of £473.8m, up from £356.5m on the back of strong US and UK markets, and said it was confident in the medium-term outlook.Revenue grew 24% to £2.04bn from £1.63bn and Ashtead proposed a final dividend of 12.25p, which brings the dividend for the full year to 15.25p, up 33% from 11.5p in 2015. Chief executive Geoff Drabble said: "2014/15 was another very successful year for Ashtead. The consistent execution of our well-established strategy focused on organic growth supplemented by bolt-on acquisitions has delivered both excellent financial results and significantly enhanced our geographic footprint and the breadth of the markets we serve."He added: "Our markets continue to provide both structural and cyclical opportunity. The business model established over recent years has a track record of exploiting these opportunities and we are supported by a strong balance sheet. Therefore the board looks forward to the medium term with confidence." Analysts were positive on the results, which Panmure Gordon said signaled continued strong momentum in earnings before interest, tax, depreciation and amortisation through the fourth quarter. "Expectations for sustained high capex should underpin near-term earnings growth," said Panmure, as it reiterated its 'buy' recommendation on the stock.