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Ashtead Technology Holdings PLC on Monday reported a surge in interim profit as it expects annual performance to be in line with expectations and said it has bought specialist subsea dredging technology firm WeSubsea for £5.6 million.
For the six months that ended on June 30, the Aberdeenshire-based subsea equipment rental firm said pretax profit jumped by 88% to £7.5 million from £4.0 million a year earlier, as revenue rose 29% to £31.7 million from £24.7 million a year earlier.
Ashtead said the rise in revenue was caused by higher demand in ‘both offshore renewables and offshore oil and gas’.
Adjusted earnings before interest, tax, depreciation and amortisation rose 21% to £12.3 million from £10.1 million.
Chief Executive Officer Allan Pirie said: ‘As governments set out their plans to ensure energy security, investment in both oil and gas and renewables offshore infrastructure is expected to continue. We are well placed to benefit from this, and the market fundamentals remain strong for Ashtead Technology.’
Looking ahead, Ashtead Technology said it is encouraged by its performance and expects full-year performance to be at least in line with market expectations.
Separately, Ashtead Technology said it bought specialist in subsea dredging technology solutions WeSubsea AS, which also is based in Aberdeenshire. On a cash free, debt free basis, it is paying NOK65 million, about £5.6 million.
The transaction is expected to be completed during the fourth quarter this year.
For financial 2021, WeSubsea generated revenue of £1.9 million, and adjusted earnings before interest, tax, depreciation and amortisation of £900,000.
Ashtead said the purchase is expected to be earnings-enhancing and exceed its cost of capital in its first full-year ownership.
Pirie added: ‘The acquisition underlines our ambition to be a global leader in IMR and decommissioning through providing one of the widest subsea equipment and service offerings in these fields to support our customers operations across the offshore energy sector.’
Shares were up 2.1% at 266.45 pence each on Monday afternoon in London.
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