Ashtead Technology has posted record results for the first half of the year, indicating ambitious future expansion plans.
- The company experienced a 61% surge in revenue, bolstered by strong product demand within the offshore energy sector.
- The adjusted EBITA grew by 46% to £22.6 million, reflecting significant profitability improvements.
- Despite strong performance metrics, shares dropped nearly 6% in early trading on Monday.
- Future growth is expected through mergers and acquisitions, as part of a strategic focus on international expansion.
Ashtead Technology, a leader in subsea equipment rental for the offshore energy sector, has delivered a record performance for the first half of 2024. The company saw a substantial 61% increase in revenue, attributed to heightened demand for its products up to 30 June 2024. This growth was underlined by a notable rise in profitability, with adjusted earnings before interest, tax, and amortisation increasing by 46% to reach £22.6 million, a significant leap from £15.5 million in the same period the previous year.
However, despite these impressive figures, the company’s shares opened nearly six per cent lower on Monday. Looking forward, Ashtead Technology, which is listed on the London Stock Exchange, continues to view mergers and acquisitions as integral to its growth strategy. This focus on M&A is aimed at enhancing its service offerings and facilitating international expansion. The company’s recent notable acquisition was that of ACE Winches, purchased for £53.5 million last November, a move that has been described by Peel Hunt analyst Andrew Nussey as ‘progressing well, with a strengthening pipeline’.
CEO Allan Pirie commented on the company’s successful trajectory, stating “I am extremely pleased to deliver another record trading performance as we build on the strong momentum seen through 2023.” Pirie further remarked on the company’s strategic initiatives, highlighting the ongoing execution of plans to broaden its offerings through both organic growth and further acquisitions. “We have continued to execute on our strategy to expand the breadth and depth of our offering through both organic and inorganic investment, increasing the resilience and differentiated nature of our business model,” he elaborated.
Pirie remained optimistic about the company’s future prospects, noting the favourable conditions within the global offshore energy market and the company’s continued investments which are expected to support long-term growth. “The outlook for our business remains positive given the strength of the global offshore energy market and our continued investment to support longer term growth,” Pirie added. Furthermore, Ashtead Technology is aiming for low double-digit organic revenue growth, with its 2024 full-year guidance remaining unchanged.
Ashtead Technology remains steadfast in its expansion goals, leveraging record performance to drive strategic growth plans forward.
