Ashtead Technology reports record first-half

2nd Sep 2024 11:53

(Sharecast News) - Offshore equipment subsea equipment rental and solutions specialist Ashtead Technology reported record financial results for the first half of 2024 on Monday, driven by strong demand across both offshore renewables and oil and gas sectors.

The AIM-traded firm said that for the six months ended 30 June, its revenue surged 61.4% to £80.5m, with a gross profit of £61m, up 55.3% from the prior year.

It also saw a 48.6% increase in adjusted EBITDA, reaching £31.4m.

Adjusted EBITA grew 45.6% to £22.6m, while adjusted profit before tax rose 38.6% to £19.6m.

Basic earnings per share climbed 27.5% to 16.7p.

The revenue growth was supported by a 16% organic increase, outperforming underlying markets, and a 47% boost from the acquisition of ACE Winches in late 2023.

Offshore renewables revenue increased 41.9% to £23.1m, while offshore oil and gas revenue grew by 70.9% to £57.3m.

Despite the strong performance, adjusted EBITA margins narrowed slightly to 28.1% from 31.1% in the first half of 2023, in line with expectations.

The company's return on invested capital remained robust at 25.3%.

Operationally, Ashtead Technology invested £16.4m in expanding its rental fleet, with a full-year forecast of £30m.

The integration of ACE Winches was said to be progressing well, with a strengthening sales pipeline extending into 2025.

Ashtead's management was optimistic about the full-year outlook for 2024, maintaining its positive expectations for continued growth and strategic expansion through both organic growth and further acquisitions.

"I am extremely pleased to deliver another record trading performance as we build on the strong momentum seen through 2023," said chief executive officer Allan Pirie.

"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."

Pirie said the outlook for the business remained positive given the strength of the global offshore energy market, and Ashtead's continued investment to support longer-term growth.

"The board is encouraged by the group's performance in the half-year which gives us increased confidence on our full year 2024 outturn and our expectations remain unchanged."

At 1133 BST, shares in Ashtead Technology Holdings were down 11.67% at 689p.

Reporting by Josh White for Sharecast.com.