Shares in Ashtead Technology took off after it released solid first-half numbers and announced its move to London’s Main Market will conclude during the autumn.
At 388p per share, Ashtead’s share price was last 12.8% higher in Tuesday business.
The company – which provides subsea technology solutions for the offshore energy industry – said revenues jumped 23.2% in the six months to June, to £99.1 million.
This reflected organic growth of 1.3%, and inorganic growth of 22.7% following Ashtead’s acquisitions of Seatronics and J2 Subsea late last year.
The business said it enjoyed “continued growth from both oil and gas and renewables markets.” These sectors accounted for £73.7 million and £25.4 million of revenues respectively.
Adjusted EBITA increased 19.7% to £27 million. The firm’s adjusted EBITA margin, however, dropped by 81 basis points over the year to 27.3%.
Operating profit rose 12.3%, to £23.2 million, while pre-tax profit edged 0.8% higher to £17.8 million.
Acquisition Synergies Beat Forecasts
Ashtead said that “[the] integration of Seatronics and J2 Subsea acquisitions completed in November 2024 has delivered higher operational synergies quicker than initially expected.”
It acquired the businesses for £63 million in a move that boosted its survey and robotics rental fleet by roughly 30%.
Ashtead’s net cash from operating activities improved by £9.7 million in the first half, to £21.1 million. But net debt to adjusted EBITDA rose to 1.6 times from 1.1 times in the first half of 2024.
Leverage is tipped to fall to 1.4 times by the end of the year.
Ashtead affirmed its July forecasts that adjusted EBITA for the full year will be modestly below prior expectations.
Main Market Move Confirmed
Chief executive Allan Pirie said “the group has continued to deliver strong profitability and year-on-year growth despite some market and geopolitical headwinds during the period.”
He noted that “while this business environment somewhat tempered activity and led to a slower seasonal ramp up of revenues through quarter two, we have been able to continue to strengthen our business, execute on our long-term strategy and focus on driving enhanced quality of earnings.”
Pirie said that key projects delayed in the first half have now been mobilised, and that “our customers continue to report sustained record backlogs supported by significant contract awards in the period.”
Ashtead said its plan to migrate from an Alternative Investment Market (AIM) listing to one on London’s Main Market is expected to conclude on 6 October, 2025.
Pirie said “the greater liquidity and broader access to international investors offered by the Main Market will provide an excellent platform for the next phase of Ashtead Technology’s growth strategy implementation.”
Strong Execution
Analyst Andy Murphy of Edison said that Ashtead’s first-half performance “reflects both resilience and disciplined execution,” adding that “looking ahead, [its] structural growth drivers remain firmly in place.”
He noted that “oil and gas continues to underpin revenues, but accelerating activity in offshore wind and decommissioning offers additional scale, with both markets forecast to expand at double-digit rates through 2028.”
However, he added that “[while] record customer backlogs and strong sanctioning activity provide visibility… macro and geopolitical risks, as seen in US offshore wind policy and Middle East disruptions, may continue to create volatility in quarterly performance.”