Ashtead Technology reports a ‘record’ performance in the first half of 2024, driving ambitious expansion plans.
- The company’s revenue surged by 61%, partially attributed to increased demand in the offshore energy sector.
- Despite financial growth, shares declined nearly six percent as markets opened on Monday.
- The firm eyes mergers and acquisitions as key to enhancing its offerings and international presence.
- Ashtead Technology maintains an optimistic outlook for continued investment and sustained growth.
Ashtead Technology, a notable entity in the subsea equipment rental domain, recorded its strongest performance to date in the first half of 2024. This achievement is primarily driven by a substantial 61% increase in revenue, a direct result of heightened demand for their products within the offshore energy industry. According to City AM, the company’s focus remains steadfast on expanding its operations through strategic mergers and acquisitions.
In the realm of profitability, Ashtead Technology demonstrated notable growth, with adjusted earnings before interest, tax, and amortisation (EBITA) climbing by 46% to £22.6 million. This figure marks an impressive rise from the £15.5 million reported in the corresponding period of the previous year. However, in spite of these robust financial indicators, the company saw its shares fall by nearly six percent as trading commenced on the London Stock Exchange, indicating market reactions that diverge from the financial health reported by the company.
The company has articulated a clear vision for future growth, identifying mergers and acquisitions as pivotal strategies in enhancing their service range and driving international expansion. The recent acquisition of ACE Winches for £53.5 million in November exemplifies this strategic direction, with analysts from Peel Hunt noting the progressive development of Ashtead Technology’s pipeline.
CEO Allan Pirie reflected positively on the company’s trajectory, emphasising the proactive approach being adopted to expand its offerings both organically and through acquisitions. He noted, “I am extremely pleased to deliver another record trading performance as we build on the strong momentum seen through 2023.” His commentary reinforced the optimism surrounding the business’s future, particularly given the global offshore energy market’s strength.
The Board of Ashtead Technology remains buoyant regarding the company’s full-year outlook for 2024, expressing confidence in achieving low double-digit organic revenue growth. The group’s Sunbelt Rentals unit, based in Birchwood Park, Warrington, continues to play a significant role in this broader strategic ambition.
Despite recent share volatility, Ashtead Technology maintains strong growth prospects and continues to pursue a strategy focused on expansion.
