Sunbelt Rentals posted $3.277 billion in total revenue for its fiscal year ended April 30, compared to its fiscal 2015 total of $2.742 billion, a 19.5-percent hike according to results announced by parent company Ashtead plc. EBITDA for the fiscal year was $1.584 billion compared to $1.294 billion, a 22.5-percent increase. Operating profit was $1.014 billion compared to $832.6 million in the previous year, a 21.8-percent jump.
Group revenue, including U.K.’s A-Plant totaled £2.546 billion (about U.S. $3.593 billion) compared to £2.039 billion a year ago, a 24.9-percent leap.
The group’s strategy remains unchanged with growth being driven by strong same-store growth supplemented by greenfield openings and bolt-on acquisitions.
Rental revenue for Sunbelt Rentals was $2.924 biillion, an 18-percent year-over-year increase. Same-store revenue for store in existence since at least May 1, 2014, was 12 percent, and bolt-ons and greenfields added an additional 7 percent of Sunbelt’s rental revenue.
“2015/16 was another very successful year for Ashtead with group rental revenue increasing 17 percent and underlying pre-tax profit up 24 percent to £645 million at constant exchange rates,” said Ashtead chief executive Geoff Drabble. “We continue to deliver on our well-established strategy of organic growth, supplemented by bolt-on acquisitions. We have broadened both our geographic footprint and the markets we serve and the benefits of this diversification are evident, both in our financial performance and our market-share gains. Particularly encouraging is the continued improvement in our margins, with group EBITDA margins now a record 46 percent. These strong margins, together with the natural moderation of our replacement fleet expenditure, mean we are entering a phase where we anticipate both good earnings growth and significant free cash flow generation.
“Our end markets remain strong, the structural drivers are still in place and we have a strong balance sheet which allows us to execute our plans responsibly. As a consequence, the board continues to look to the medium term with confidence.”
The company said it opened 58 greenfield stores compared with 31 in the previous year, and spent $81 million on bolt-on acquisitions in the United States and Canada, adding an additional 10 branches.
Capital expenditure for the year was £1.24 billion, including Sunbelt Rentals and A-Plant, and now has an average fleet age of 25 months. The company said capex will be lower in 2016-17 and expects to spend between $700 million and $1 billion.
For the fourth quarter, Sunbelt Rentals’ revenue was $808.6 million, compared to $694.8 million for the previous year’s fourth quarter, a 16.4-percent jump.
Sunbelt Rentals now has 559 branches, and A-Plant has 156 in the U.K. Sunbelt’s location number includes 25 Sunbelt at Lowe's stores.
