Ashtead Group PLC 1st Quarter Results -4-
03 September 2014 - 4:00PM
UK Regulatory
Other pension costs 2.0 - 2.0 1.9 - 1.9
107.1 - 107.1 103.6 - 103.6
Used rental equipment sold 14.5 - 14.5 16.2 - 16.2
Other operating costs:
Vehicle costs 28.6 - 28.6 27.6 - 27.6
Spares, consumables & external
repairs 23.9 - 23.9 19.0 - 19.0
Facility costs 13.1 - 13.1 12.2 - 12.2
Other external charges 60.8 - 60.8 55.2 - 55.2
126.4 - 126.4 114.0 - 114.0
Depreciation and amortisation:
Depreciation 76.4 - 76.4 66.3 - 66.3
Amortisation of intangibles - 2.9 2.9 - 2.1 2.1
76.4 2.9 79.3 66.3 2.1 68.4
324.4 2.9 327.3 300.1 2.1 302.2
4. Amortisation
Amortisation relates to the periodic write-off of intangible
assets. The Group believes this item should be disclosed separately
within the consolidated income statement to assist in the
understanding of the financial performance of the Group. Underlying
profit and earnings per share are stated before amortisation of
intangibles.
Three months to 31
July
2014 2013
GBPm GBPm
Amortisation of intangibles 2.9 2.1
2.9 2.1
Taxation (0.9) (0.7)
2.0 1.4
5. Net financing costs
Three months to 31
July
2014 2013
GBPm GBPm
Investment income:
Net interest on the net defined benefit asset (0.1) -
Interest expense:
Bank interest payable 4.1 4.9
Interest payable on second priority senior secured
notes 8.6 5.3
Interest payable on finance leases 0.1 0.1
Non-cash unwind of discount on provisions 0.1 -
Amortisation of deferred costs of debt raising 0.3 0.6
Total interest expense 13.2 10.9
Net financing costs 13.1 10.9
6. Taxation
The tax charge for the period has been computed using an
estimated effective rate of 39% in the US (2013: 39%) and 22% in
the UK (2013: 23%). The blended effective rate for the Group as a
whole is 36% (2013: 38%).
The tax charge of GBP43.7m (2013: GBP37.4m) on the underlying
pre-tax profit of GBP120.4m (2013: GBP99.5m) can be explained as
follows:
Three months to 31 July
2014 2013
GBPm GBPm
Current tax
- current tax on income for the period 19.5 7.0
- adjustments to prior year 0.5 -
20.0 7.0
Deferred tax
- origination and reversal of temporary differences 23.8 29.3
- adjustments to prior year (0.1) 1.1
23.7 30.4
Tax on underlying activities 43.7 37.4
Comprising:
- UK tax 4.3 3.3
- US tax 39.4 34.1
43.7 37.4
In addition, the tax credit of GBP0.9m (2013: GBP0.7m) on
amortisation of intangibles of GBP2.9m (2013: GBP2.1m) consists of
a deferred tax credit of GBP0.2m relating to the UK (2013: GBP0.2m)
and GBP0.7m (2013: GBP0.5m) relating to the US.
7. Earnings per share
Basic and diluted earnings per share for the three months ended
31 July 2014 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:
Three months to 31
July
2014 2013
Profit for the financial period (GBPm) 74.7 60.7
Weighted average number of shares (m) - basic 501.2 500.7
- diluted 505.8 506.6
Basic earnings per share 14.9p 12.1p
Diluted earnings per share 14.8p 12.0p
Underlying earnings per share (defined in any period as the
earnings before amortisation of intangibles for that period divided
by the weighted average number of shares in issue in that period)
may be reconciled to the basic earnings per share as follows:
Three months to 31
July
2014 2013
Basic earnings per share 14.9p 12.1p
Amortisation of intangibles 0.6p 0.4p
Tax on amortisation (0.2p) (0.1p)
Underlying earnings per share 15.3p 12.4p
8. Property, plant and equipment
2014 2013
Rental Rental
equipment Total equipment Total
Net book value GBPm GBPm GBPm GBPm
At 1 May 1,716.3 1,929.1 1,407.8 1,584.6
Exchange difference - - 31.6 35.1
Reclassifications (0.2) - (0.1) -
Additions 258.5 283.6 255.1 278.8
Acquisitions 19.3 20.4 21.1 21.5
Disposals (14.2) (15.3) (15.6) (17.4)
Depreciation (67.3) (76.4) (58.6) (66.3)
At 31 July 1,912.4 2,141.4 1,641.3 1,836.3
9. Share capital
Ordinary shares of 10p each:
2014 2013 2014 2013
Number Number GBPm GBPm
Authorised 900,000,000 900,000,000 90.0 90.0
Allotted, called up and
fully paid 553,325,554 553,325,554 55.3 55.3
At 31 July 2014, 50m (2013: 50m) shares were held by the Company
and a further 2.0m (2013: 2.2m) shares were held by the Company's
Employee Share Ownership Trust.
10. Notes to the cash flow statement
Three months to 31
July
2014 2013
GBPm GBPm
a) Cash flow from operating activities
Operating profit before amortisation 133.5 110.4
Depreciation 76.4 66.3
EBITDA before exceptional items 209.9 176.7
Profit on disposal of rental equipment (4.0) (3.4)
Profit on disposal of other property, plant
and equipment (0.6) (0.7)
Increase in inventories (3.1) (1.5)
Increase in trade and other receivables (36.9) (34.6)
Decrease in trade and other payables (21.5) (19.4)
Exchange differences 0.2 0.1
Other non-cash movements 0.9 0.7
Cash generated from operations before exceptional
items
and changes in rental equipment 144.9 117.9
b) Analysis of net debt
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