Ashtead Technology has recorded exceptional growth, looking towards expanding through mergers and acquisitions.
- The company’s revenue surged 61% in the first half of 2024 due to increased demand in the offshore energy sector.
- Despite strong financial performance, Ashtead Technology’s shares fell by nearly six percent as trading began.
- CEO Allan Pirie expresses optimism about future expansion, both organically and through acquisitions.
- The company’s recent acquisition of ACE Winches for £53.5 million shows promising progress, strengthening their growth pipeline.
Ashtead Technology, a company specializing in subsea equipment rental for the offshore energy sector, has achieved a record performance for the first half of 2024. This remarkable growth is attributed to a 61% rise in revenue, fueled by heightened demand for its products. The company’s success is further reflected in the 46% increase in adjusted earnings before interest, tax, and amortization (EBITA), reaching £22.6 million, up from £15.5 million in the previous year.
However, the robust financial achievements did not prevent a decline in the company’s shares, which dropped nearly six percent as trading commenced on Monday. Despite this, Ashtead Technology is optimistic about its future, focusing on mergers and acquisitions as a core element of its growth strategy. The firm aims to enhance its service offerings and pursue international expansion, maintaining its presence on the London Stock Exchange.
A significant step in this direction was the acquisition of ACE Winches for £53.5 million last November. Analyst Andrew Nussey from Peel Hunt notes that this acquisition is “progressing well, with a strengthening pipeline.” The acquisition highlights Ashtead’s commitment to expanding its capabilities and market reach.
CEO Allan Pirie has emphasized the company’s strategic approach, stating, “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 remains confident about the company’s future, considering the strong global offshore energy market and ongoing investment efforts.
Ashtead Technology is targeting low double-digit organic revenue growth and maintains its 2024 full-year guidance. The Sunbelt Rentals division is located at Birchwood Park, Warrington, contributing to the company’s expanding influence. The board has expressed confidence in the group’s performance in the first half of 2024, reinforcing expectations for the full-year outcome.
Ashtead Technology’s strategic growth initiatives and recent successes position it favorably within the global offshore energy market.
