Ashtead Technology reiterates expectations after robust results
By Josh White
Date: Tuesday 25 Mar 2025
(Sharecast News) - Ashtead Technology reported robust financial and operational progress for 2024 on Tuesday, driven by both organic growth and recent acquisitions.
The AIM-traded subsea technology specialist posted a 52.1% increase in revenue to £168m, with organic revenue up 14% and inorganic growth contributing 39%.
Adjusted EBITA rose 38.9% to £50.3m, although the margin narrowed by 290 basis points to 29.9% due to a more diversified revenue mix following acquisitions.
Profit before tax climbed 31.1% to £36.1m, while adjusted basic earnings per share grew 34.7% to 45p.
Return on invested capital stood at 24.3%, down 330 basis points but still well above the company's cost of capital.
The group proposed a final dividend of 1.2p, up 9.1% from the prior year.
Ashtead completed the acquisitions of Seatronics and J2 Subsea in November, its largest deal to date, enhancing its equipment fleet and expanding its presence in key markets such as Norway and the US.
Integration efforts were said to be progressing well, with cost synergies on track.
The company also continued to invest in its leadership team and infrastructure to support future growth.
Looking ahead, Ashtead said it was optimistic, citing strong demand fundamentals and record multi-year customer backlogs.
The company said it expected to maintain low double-digit organic revenue growth and high-20% EBITA margins over the medium term.
Management said it was also evaluating further merger and acquisition opportunities and considering a potential move to the London Stock Exchange's Main Market.
Despite global trade uncertainties, the company was expecting limited impact from tariffs, and reiterated its guidance for 2025.
"We are delighted with our performance in 2024, exceeding our financial and strategic objectives," said chief executive officer Allan Pirie.
"The group finished the year larger, stronger and more capable of delivering value to our customers.
"This is underpinned by the breadth of our offering and the flexibility of our international operating model."
Pirie said the integration of Seatronics and J2 Subsea, acquired in November, was at an advanced stage, adding that the quality the acquisitions had already exceeded expectations.
"Reflecting on the strong financial performance in 2024, the record backlogs being reported by our customers and the strong growth fundamentals in our core markets, we are confident in our ongoing positive momentum.
"With opportunities for both continued organic growth and disciplined merger and acquisition activity, we believe that we can deliver further value creation for our shareholders moving forward."
At 1048 GMT, shares in Ashtead Technology Holdings were up 7.05% at 577p.
Reporting by Josh White for Sharecast.com.
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