A year of significant progress; increased confidence in future growth prospects
Ashtead Technology Holdings plc, a leading provider of subsea technology solutions to the global offshore energy sector, is pleased to present its full-year results for the period ended 31 December 2024.
Full Year Highlights
- Strong revenue growth of 52% demonstrating continued momentum
- Organic revenue growth of 14%
- Inorganic revenue growth of 39%
- FX impact of -1%
- Adjusted EBITA margin at 29.9%, reflecting increased diversification in our revenue mix following acquisitions
- Profit before tax of £36.1m, an increase of 31% on prior year
- Adjusted earnings per share increase of 35% demonstrating the compounding model
- Continued strong returns from organic and inorganic investment of capital with ROIC of 24%, significantly ahead of cost of capital
- Proforma net debt to Adjusted EBITDA leverage of 1.6x following the acquisitions of Seatronics and J2 Subsea with target of <1.3x by end 2025
- Recommended final dividend of 1.2p
Operational and Strategic Highlights
- Acquisitions of Seatronics and J2 Subsea completed in November 2024, the largest deal to date, expanding our equipment fleet and adding increased depth and scale to our international locations
- Integration is well advanced and cost synergies are on track
- Strengthened footprint in key geographic locations including Norway and USA
- Broadened customer solutions through fleet investment, innovation and acquisition
- Further investment in strengthening our leadership team, continuing to build the foundations for future growth
Outlook
- Strong market fundamentals underpin the Group’s growth strategy supported by record levels of multi-year customer backlogs
- Addressable market within our focussed end markets of Oil & Gas and Offshore Renewables are forecast to grow at 9% CAGR through to 20284
- Continued confidence in delivering low double-digit organic revenue growth and EBITA margins in the high 20%’s over the medium term
- Significant opportunities for disciplined and strategic M&A, continuing to add strength and depth to our highly flexible, market appropriate business model
- Continue to monitor the potential impact of tariffs; while the position remains fast moving, we currently expect minimal impact
- The Board is encouraged by the Group’s performance in Q1 2025 and our full year 2025 expectations remain unchanged
- The Board is assessing a potential move to the Main Market and will issue a further update following further consultation with the Company’s advisors and largest shareholders
Allan Pirie, Chief Executive Officer commented:
“We are delighted with our performance in 2024, exceeding our financial and strategic objectives. 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. The integration of Seatronics and J2 Subsea, acquired in November, is at an advanced stage and the quality of what we have acquired has already exceeded our 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 M&A activity, we believe that we can deliver further value creation for our shareholders moving forward.”
Presentation
Allan Pirie, Chief Executive Officer and Ingrid Stewart, Chief Financial Officer, will host a presentation for investors and sell-side analysts at 8am today.
A live webcast of the presentation including Q&A will be available at https://stream.brrmedia.co.uk/broadcast/67d2f913fb41d35c31be9662. This will subsequently be made available to watch on demand at www.ashtead-technology.com/investors.
Please contact ashteadtechnology@vigoconsulting.com to attend the presentation in person.