Ashtead Share Discussion Threads

[disc0dave45] 07/9/2022 12:19

Someone needs to go to specsavers:

“we expect adjusted profit before taxation for the year to be in line with OUR previous expectations and the Board looks to the future with confidence."

They beat market forecasts for Q1

[mjcferguson] 07/9/2022 10:09

underlying profit per share up 33% in us$,in uk£ must be around 46%,not bad!

[trt] 07/9/2022 09:48

Could see £35 if we drop below £40

[trt] 07/9/2022 09:46

Market didn't like the suggestion in the results which said they will meet city forecasts rather than beat them.

[disc0dave45] 06/9/2022 22:45

Thanks perfido.AHT will come good.

[perfido] 06/9/2022 19:23

Hi disc0,

Thanks for your comments and views on AHTs past performance, food for thought.

I have to admit that my AHT pca purchases are very modest, but I believe will pay off sometime in the future - we long term holders are nothing if not patient and I believe AHT will deliver..🤞
.
Good luck with your own positions !

[disc0dave45] 06/9/2022 17:17

perfidoAgree, a great set of results. Any "in line" is being treated as mild profit warnings in current market. They beat forecasts and being conservative in their outlook is no bad thing IMO. Sooner that than being told we haven't a clue what's going to happen.From historical data I've looked at, Q1 tends not to be the highest contribution to yearly earnings, it's usually Q2, so that may give a better feel as to how the year is going.Good luck, again, with your cost averaging, still takes bottle to be buying in this market.

[trt] 06/9/2022 15:35

Could see this drop below £40 after these results.

[perfido] 06/9/2022 11:24

A great set of results...

Just added a modest few more to my PCA* holding at 4238.50p, happy to ride out any minor flucuations until AHT gets under way again :-)

(*PCA pound cost averaging)
.

[disc0dave45] 06/9/2022 11:09

HTTPS://www.ashtead-group.com/files/downloads/InvestorCentre/2022/Q1-2022-23-presentation.pdf

[disc0dave45] 06/9/2022 09:59

Webcast in a minute, takes seconds to sign up from their website.

[fenners66] 06/9/2022 09:24

As far as EPS driving capital appreciation , how do you explain
6549 to 4150 in less than a year ?

[fenners66] 06/9/2022 09:22

Why always if you don't like it sell comment?

They may well deliver the 20% increase in dividends that they should.

As has already been mooted above the CEO's earnings from AHT have
increased - the owners need that too.

But owners are fully entitled to examine all aspects of running of their business
and if enough think there is a need for a change - they will ask for it and get it.

[disc0dave45] 06/9/2022 09:04

The flip side would be reduced eps, thus reduced possible shareholder capital appreciation and reduced dividend.Don't have a firm view one way or the other, it's Ying and Yang, but we all have a choice, if you don't like how the BoD are managing the business then don't buy or simply sell.

[fenners66] 06/9/2022 08:58

One thing that has to happen though is for that EPS increase to be reflected in higher
DPS.

31% great first qtr but I fear the company are signalling that level of increase is not
going to continue throughout the year.

Still they should give a substantial boost to dividends or else its all been for naught.

[fenners66] 06/9/2022 08:50

slogsweep - very much agree with your last statement.

The outlook clearly highlights that despite top line beat the forecast for the year
is going to be unmoved.

Market reaction can change over the next few days / weeks etc. but the debt pile
that we have now - long term borrowings up $1.6bn yr on yr is going to be a brake
on earnings for years going forward.

[slogsweep] 06/9/2022 08:36

Share buy backs are rarely in the shareholders interest if financed by borrowing. They should have used the cash to reduce debt when the sun was shining.

[disc0dave45] 06/9/2022 08:34

Very good and balanced post.Numbers looked very good to me and surprised they actually beat the earnings forecast by so much (+7%).

[ozzietom] 06/9/2022 08:23

I thought these were a decent set of results, but slightly negative market reaction again...which seems to be the norm these days. The revenues, operating profits and EPS all ahead of expectations. The only negatives were slight drop in margins and impact of higher interest rate on debt repayments. It really is a struggle to make any headway in these markets. The outlook is still positive. Cash flow was way down, due to increased capital expenditure and share buy backs. Wonder if they should halt share buy-backs in this environment where cost of debit is increasing. Will continue to hold as it has shown consistent solid progress in operations and looks like it will continue to do so. Eventually the share price will reflect that. As Buffet says 'In the short term the market is a voting machine, in the long term it is a weighing machine'

[fenners66] 06/9/2022 08:20

So here is the dichotomy

"The business is performing strongly, with revenue and operating profit ahead of our previous expectations.

This performance is offset by increasing interest costs and therefore, we expect adjusted profit before taxation for the year to be in line with our previous expectations"

Strongly performing business but profit in line.

So does the market like or dislike ?

No apologies here , its down to this.

Given strong top line growth is offset by higher interest (borrowings because of BB) - does the market rate the shares which with in line results , should have higher EPS,
UP , SAME or DOWN ?

[slogsweep] 06/9/2022 07:48

not if you bought AT., it was a no brainer to buy them in my view

[disc0dave45] 05/9/2022 19:58

Ashtead Technology (AT.) interims today, pity AHT sold it:Revenue +28.5% to £31.7mAdjusted pre-tax profit +95% to £7.6mAdjusted earnings +102% to 8.3p per shareReturn on invested capital: 19.1% (H1 2021: 10.9%)Net debt/EBITDA 0.9x (H1 2021: 1.8x)

[disc0dave45] 05/9/2022 12:06

So apt, Miss Riches head of pay committee!

[perfido] 05/9/2022 11:01

Good morning fenners,

A little disappointing but I have no idea what the spread on a transaction of this size would be.

I believe the spot rate on 14th June when results were published was around $1.2005 so at least the rate has moved a bit in our favour :-)

[dcarn] 05/9/2022 10:58

FTSE 100 giant Ashtead cruising for row with shareholders over chief executive Brendan Horgan's £6.6m pay
Investors advised to vote against the eye-watering package for Horgan
Also to block re-election of Lucinda Riches, head of pay committee
Miss Riches has written to shareholders in an attempt to head off a revolt