Ashtead Technology (AIM: AT), Aberdeen-based subsea technology and services firm, has shared “another record trading performance” in its half-year results.
Allan Pirie, the firm’s chief executive, commented: “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.”
His business reported a 61.4% increase in year-on-year revenue as its earnings before tax stood at £22.6 million, an increase of over 45% compared to 2023’s figures.
“EBITDA and EBITA margins of 39% and 28% respectively are in line with expectations and we have delivered an EPS increase of 36% over the past 12 months,” Pirie added.
Last year was a strong period for Ashtead Technology with its revenue growing 51% to £110.5 million (compared to £73.1m in 2022), driven by strong organic growth (35%) and mergers and acquisitions (17%).
At the time, Energy Voice reported that this was the result of Ashtead Technology’s acquisition of WeSubsea and Hiretech, both completed in 2022.
Pirire said in April: “We’ve seen an opportunity to grow and scale Ashtead technology through M&A by consolidating a fragmented market, expanding geographically and expanding our range of products and solutions.”
The CEO is confident in the continued success of his company as he sees growing demand for Ashtead Technology’s services.
He commented: “Customers continue to increase the size and quality of their backlogs which are extending in duration to 2026 and beyond as evidenced by published backlogs from our larger listed customers.”
Panmure Gordon director and oil and gas research analyst Ashley Kelty added his two cents: “Outlook remains encouraging, and investors will be cheered by beating consensus, but maintaining the momentum of previous periods was always going to be a challenge, with margins eroded.
“Headwind in 2H24 likely due to slowdown of activity in North Sea, but portfolio is well diversified, and this could offer new M&A opportunities.”
ACE Winches continues M&A trend
On today’s half-year results, the firm’s CEO attributed success to the acquisition of ACE Winches which was completed during H2 2023, offset by a FX headwind.
The CEO’s statement added: “M&A is also a key element of the strategy as we focus on broadening our product and services offering, and geographic exposure to build a platform to sustain medium-term double-digit organic revenue growth.”
Last month Ashtead Technology opened a new equipment rental hub in Norway’s energy capital, Stavanger.
This new Nordic base offers a suite of ROV tooling and subsea survey technology.
AIM-listed Ashtead Technology said it had plans to further expand its Norwegian team and service offering over the next year.
Pirie added: “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.”
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