Ashtead Technology, the subsea equipment rental and solutions firm based in Westhill, near Aberdeen, has seen profits surge nearly 70% on the back of recent acquisitions.
Its latest takeover saw it pounce for fellow north-east business Ace Winches, a specialist in the design, assembly and rental of lifting, pulling and deployment equipment and services.
At the time, the sale of Ace – based at Towie Barclay Works, near Turriff – by Alfie and Valerie Cheyne was said to be worth £53.5 million.
In accounts, for the 2023 calendar year, Ashtead revealed it forked out about £52.6m in cash for Ace and associated businesses. It also made a loan repayment of around £11m.
Ashtead’s workforce balloons to 527
Ashtead said its headcount “organically” grew by 25% last year. An additional 203 people joined the firm via the Ace deal, taking the total headcount to 527 at year-end.
Ace’s results for the 12 months to December 31 2023 “delivered on expectations”, Ashtead said.
The group added its overall financial performance last year was also boosted by the successful integration of two other north-east businesses, Hiretech and WeSubsea, acquired in 2022.
Group pre-tax profits surged by 68.9% to £27.5m on revenue that was up more than 50% at £110.5m.
Shares in Ashtead fall sharply despite strong growth in profits and revenue?
But shareholders in the Alternative Investment Market-listed company were unimpressed.
The stock fell more than 9% to £6.87 today amid speculation among investors about Ashtead’s underlying performance, stripping out the Ace impact, and rising costs.
‘Significant’ opportunities
Ashtead insisted a “robust” balance sheet and “strong operational cash generation” meant it was well-placed to pursue other acquisitions.
The group expects to benefit from growth prospects across its oil & gas and renewable energy markets globally.
Opportunities in offshore renewables markets are “particularly significant”, it added.
Chief executive Allan Pirie said: “2023 was another successful year for Ashtead Technology.
“We grew ahead of our markets in 2023, highlighting the efficiencies and value add we provide our customers’ offshore operations.
“We are investing for the future, expanding our market reach through both organic and inorganic investments.
Mr Pirie added: “We continue to broaden our fleet and build strength and depth of expertise which ensures we are well-positioned to continue to capitalise on upcoming market opportunities in a sector supported by long-term structural tailwinds.”
Ashtead was founded in 1985 and joined the London stock market in November 2021.
The fast-growing company serves customers around the world from 10 facilities in major offshore energy hubs in Europe, the Americas, Middle East and Asia Pacific.
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