Ashtead Technology said it achieved a “record” performance in the first half of the year as it looks to build out its merger and acquisition (M&A) pipeline.
In the six months ended 30 June 2024, the subsea equipment rental and provider for the offshore energy industry posted a 61 per cent year-on-year increase in revenue due to strong demand for its products.
Adjusted earnings before interest, tax and amortisation (EBITA) increased by 46 per cent to £22.6m, up from £15.5m in the year-ago period.
But shares dropped nearly six per cent when the market opened on Monday.
The London-listed company expects M&A to continue to be a “key element” of its strategy as it focuses on expanding its product and services offering as well as its geographic footprint.
Ashtead Technology bought ACE Winches in November 2023 for £53.5m, which Peel Hunt analyst Andrew Nussey said is “progressing well, with a strengthening pipeline”.
Allan Pirie, chief executive officer, said: “I am extremely pleased to deliver another record trading performance as we build on the strong momentum seen through 2023.
“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 continued: “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,” he added.
Ashtead Technology is targeting low double-digit organic revenue growth. Its 2024 full-year guidance remains unchanged.