Ashtead Technology has posted a 57.1% increase in revenues, driven by offshore renewables and offshore oil and gas.
Allan Pirie, Ashtead Technology CEO, welcomed the company’s “strongest ever set of interim results. We have continued to see positive momentum through the first half of 2023”.
Half year revenues totalled £49.8m, up 57% on the same period last year, on adjusted pre-tax profits of £14.3m, up 89%.
The Aberdeen-headquartered company had benefited from investing in people and equipment, he said, while utilisation and pricing had both increased.
“Our recent acquisitions of Hiretech and WeSubsea have performed ahead of our expectations and we are benefitting from our increased breadth of capabilities,” Pirie said.
Offshore renewables were up 74.1% to £16.3 million, from £9.4mn in the previous period. Offshore oil and gas revenues were up 50% at £33.5mn.
Ashtead Technology reported a gross profit margin of 78.8%. However, net debt increased to £26.4mn, from £21.2mn in 2022. Company growth, though, saw leverage reduce.
“Market fundamentals remain strong and we continue to expand our offering whilst growing within our existing markets,” Pirie said.
Ashtead Technology saw “”unseasonal strength” in the last quarter of the 2022 financial year. As such, he said, the company expects “year-on-year growth to moderate in the second half”.
As a result of the results, the board has “increased confidence in the outlook for the business and we expect FY23 outturn to be comfortably ahead of our previous expectations”.
Capital expenditure was £8mn for the period, with a forecast for the full year of £20mn. The company said it was focused on expansion, in capabilities and internationally. It is considering additional acquisitions.
As of the end of June, Ashtead Technology employed 289 people, up 11% from the end of 2022.
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