Ashtead reports strong financial performance as U.S. economy reopens.

Ashtead Group plc (LON: AHT) said its profit jumped more than 100% in the fourth quarter as the U.S. economy started to reopen after an unprecedented hit from the Coronavirus pandemic. Its revenue also climbed by 23% in Q4.

Ashtead Group's cash flow soars to a record £1.38 billion

For the full financial year, Ashtead reported £5.03 billion of revenue – a 3% increase from last year. Its annual operating profit came in at £1.13 billion versus the year-ago figure of £1.22 billion.

The industrial equipment rental company that focuses primarily on the U.S. market said its cash flow soared to a record £1.38 billion in the recent year. In fiscal 2020, it had generated a much lower £792 million of cash flow.

Commenting on the financial update on Tuesday, CEO Brendan Horgan said:

In separate news from the United Kingdom, Bellway plc said its house completions in 2021 are likely to return to the pre-pandemic levels.

Ashtead’s board declared 35 pence per share of a final dividend on Tuesday that pushed the full-year payment up, to 42.15 pence per share. The company had paid 40.65 pence per share last year.

According to the FTSE 100 firm, it spent £125 million on bolt-on acquisitions in fiscal 2021 and invested £718 million of capital in the business. The next phase of its strategic plan, Sunbelt 3.0, launched in April. As per analyst Nicholas Hyett of Hargreaves Lansdown:

Ashtead tanked 2% on market open on Tuesday but gained more than 3% later on to trade at a per-share price of £52.30 versus £35 per share at the start of the year. At the time of writing, it is valued at £23.22 billion and has a price to earnings ratio of 37.94.