Ashtead posts first half-year results since IPO, announces acquisition of WeSubsea for £5.6m

Ashtead Technology (AIM: AT) has reported a huge bump in takings in its first half-year results since the company’s IPO in November last year.

The Aberdeenshire subsea specialist posted pre-tax profits for the first half of 2022 of £6.9 million, up from £2.1m in the corresponding period in 2021, an increase of 233.1%.

Revenue for the six months ended June 30 2022 was £31.7m, compared to £24.7m in H1 last year.

The “strong year-on-year revenue increase” was delivered through “growth across all geographic markets”, driven by higher demand in both offshore renewables and offshore oil and gas.

Ashtead’s employee headcount at the end of June was 219, 7% higher than the end of last year.

That has positioned the “business for continued growth”, and year to date capital expenditure investment totals £7.6m.

Ashtead Technology reached a market valuation of nearly £130m from its initial public offering (IPO) last year.

The company was admitted to the London Stock Exchange’s Alternative Investment Market (AIM) on November 23.

© Supplied by Ashtead Technology

Allan Pirie, Ashtead chief executive, said: “We are pleased with our half year performance which demonstrates continued positive momentum in the business against a supportive backdrop.  As governments set out their plans to ensure energy security, investment in both oil and gas and renewables offshore infrastructure is expected to continue.  We are well placed to benefit from this, and the market fundamentals remain strong for Ashtead Technology.  Our HY22 results and end market outlook give us increased confidence in the outlook for our business.”

In addition to its half year results, Ashtead has also announced the acquisition of the entire share capital of Norwegian firm WeSubsea on a cash free, debt free basis for £5.6m.

Subject to adjustment for normalised working capital, the consideration will be paid in cash on the date of completion, which is expected to be during Q4 of 2022.

Founded in 2010, WeSubsea is a specialist in subsea dredging technology solutions supporting customers globally from its operating base in Aberdeenshire.

The business generated revenues of £1.9m, Adjusted EBITDA of £1.1m and Adjusted EBITA of £0.9m in 2021.

The purchase is expected to be earnings enhancing and exceed Ashtead’s cost of capital in its first full year of ownership.

© Supplied by Ashtead Technology

It will be the group’s sixth acquisition in the past five years, “demonstrating its commitment to growing its capability and service offering” through mergers and acqusitions.

Mr Pirie said: “WeSubsea is a pioneering technology business with an excellent reputation and strong customer service ethos. Its fleet of high-performance dredge systems and strong technical know-how will be a great strategic fit for our business and will complement our extensive range of dredging, cutting, coating removal and ROV tooling solutions and services.

“The acquisition underlines our ambition to be a global leader in IMR and decommissioning through providing one of the widest subsea equipment and service offerings in these fields to support our customers operations across the offshore energy sector. This is a great example of a business which has predominantly supported the offshore oil and gas market but can be repositioned into the offshore renewables space through leveraging Ashtead Technology’s international network.”