Ashtead Technology has achieved a record performance for the first half of the year, setting the stage for further merger and acquisition (M&A) activities.
The company, which specialises in subsea equipment rental for the offshore energy sector, reported a significant revenue boost for the six months leading up to 30 June 2024, recording a 61% surge due to heightened product demand. In terms of profitability, its adjusted earnings before interest, tax, and amortisation (EBITA) grew by 46% to £22.6 million, an increase from £15.5 million seen in the comparable period last year.
Despite these robust figures, the firm’s shares experienced a nearly six per cent decline as trading commenced on Monday.
Looking ahead, the London Stock Exchange-listed entity envisions mergers and acquisitions as central to its growth strategy, focusing on enhancing its offerings and international expansion. Last November, Ashtead Technology made a significant acquisition of ACE Winches for £53.5 million, a move which Peel Hunt analyst Andrew Nussey describes as “progressing well, with a strengthening pipeline”.
CEO Allan Pirie commented on the company’s trajectory: “I am extremely pleased to deliver another record trading performance as we build on the strong momentum seen through 2023.” Pirie went on to highlight the proactive approach the business is taking: “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 concluded with an optimistic outlook: “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.”
“The board is encouraged by the group’s performance in HY24, which gives us increased confidence on our full-year 2024 outturn, and our expectations remain unchanged,” he added. Ashtead Technology is targeting low double-digit organic revenue growth. Its 2024 full-year guidance remains unchanged. Its business operations are based in Birchwood Park, Warrington.
Ashtead Technology’s record performance in the first half of the year positions the company for further strategic growth through mergers and acquisitions, despite the recent decline in its stock price. The positive outlook and continued investment highlight the company’s resilience and commitment to long-term growth in the offshore energy market.