Ashtead Group Plc

15 June 2021

Change in presentational currency

As announced with today's full year results, Ashtead Group plc ('the Group') has decided to change its presentational currency from sterling to US dollars with effect from 1 May 2021.

The Board believes that the change in presentational currency will provide investors and other stakeholders with greater transparency of the Group's performance and reduced foreign exchange volatility given that c. 80% of the Group's revenue and c. 90% of the Group's operating profit originate in US dollars.

Commencing with the 2021/22 interim dividend in December, future dividends will be declared in US dollars in accordance with the Group's existing progressive dividend policy.  Eligible shareholders will receive dividends in sterling unless they submit an election form to the Group's registrars stating their wish to receive their dividend in US dollars.  The sterling dividend will be translated at the prevailing exchange rate a week prior to its payment, the date of which will be announced with the respective results.

As noted above, the change in the Group's presentational currency will be effective from 1 May 2021.  Consequently, the Group's first quarter results for the three month period ending 31 July 2021, due to be announced on 16 September 2021, and all subsequent financial information, will be prepared using US dollars as the presentational currency. In accordance with the relevant accounting standards, comparative information will be provided in US dollars.

Selected historical financial information for the financial years ended 30 April 2020 and 30 April 2021, and for the four quarters ended 31 July 2020, 31 October 2020, 31 January 2021 and 30 April 2021, together with key financial highlights for the five years ended 30 April 2021, (collectively the 'Restated Financial Information'), has been re-presented in US dollars and is set out herein for comparative purposes.

Contacts:

RESTATED FINANCIAL INFORMATION

CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 30 APRIL 2021

CONSOLIDATED BALANCE SHEET AT 30 APRIL 2021

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 30 APRIL 2021

NOTES TO THE RESTATED CONSOLIDATED FINANCIAL INFORMATION

1.         Basis of preparation

The Restated Financial Information should be read in conjunction with the preliminary results announcement for the year ended 30 April 2021; the Annual Report and Accounts for the year ended 30 April 2020; and the interim financial information for the three months ended 31 July 2020, 31 October 2020 and 31 January 2021, all of which have been prepared in accordance with International Financial Reporting Standards ('IFRS') as adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union, including IAS 34 where applicable.

The Restated Financial Information does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.  The statutory accounts for the year ended 30 April 2021 were approved by the directors on 14 June 2021 and will be delivered to shareholders and filed with the Register of Companies and made available on the Group's website (www.ashtead-group.com) in July 2021.  The auditor's report on those accounts was unqualified, did not include a reference to any matter by way of emphasis of matter and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006.

Presentational currency

The Group will present its consolidated financial statements for the year ending 30 April 2022 in US dollars.  In accordance with IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors, this change in presentational currency will be applied retrospectively.

The restated financial information included herein will form the basis of the comparative financial information to be included in the Annual Report and Accounts of the Group for the year ending 30 April 2022 and all published financial information from 1 May 2021 onwards.

In accordance with the provisions of IAS 21, the Effects of Changes in Foreign Exchange Rates, in respect of changes in presentational currency, financial information has been restated from sterling to US dollars as follows:

·    assets and liabilities in non-US denominated currencies were translated into US dollars at the rate of exchange ruling at the relevant balance sheet date;

·    non-US dollar income statements and cash flows were translated into US dollars at average rates of exchange for the relevant period;

·    share capital, share premium and all other equity items were translated at the historical rates prevailing at 1 May 2004, the date of transition to IFRS, or the subsequent rates prevailing on the date of each relevant transaction; and

·    the cumulative foreign exchange translation reserve was set to zero on 1 May 2004, the date of transition to IFRS and this reserve has been restated on the basis that the Group has reported in US dollars since that date.

The exchange rates of US dollars to Pound sterling (£) and Canadian dollar (C$) used were:

2.      Quarterly financial information

(a)    Income statement

(b)    Balance sheet

(c)    Cash flow statement

3.       Segmental analysis

(a)     Annual income statement analysis

(b)     Quarterly income statement analysis

(c)     Segmental asset analysis

FIVE YEAR HISTORY

¹ The Group elected to apply IFRS 16 using the modified retrospective approach with no restatement of comparative figures. As a result, the results for 2021 and 2020 are not comparable directly to the prior years with the adoption of IFRS 16 resulting in higher EBITDA and operating profit but lower profit before exceptional items, amortisation and tax than under the previous accounting standard. 

² The 2021 final dividend has been translated at a rate of 1.40 for the purpose of presenting this five year history.

*Before exceptional items and amortisation.