The subsea technology provider's revenue jumped by 52% following strategic acquisitions.
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Revenue Surge Following Strategic Acquisitions
Aberdeenshire-based Ashtead Technology has reported a remarkable revenue increase of £58 million, translating to over £1 million in additional revenue each week. The company’s revenue surged by 52%, climbing from £110 million to £168 million for the fiscal year ending December 31, 2024.
This impressive growth can be attributed to the strategic acquisitions of Seatronics and J2 Subsea from Acteon Group for £63 million in November 2023, as well as the earlier acquisition of Ace Winches for £53.5 million.
Profit Growth and Workforce Expansion
In addition to revenue growth, Ashtead Technology also saw a significant increase in pre-tax profit, which rose by 31.1% to £36.1 million, up from £27.5 million the previous year. The company’s workforce expanded dramatically, growing from 318 employees in 2023 to 5. Chief Executive Allan Pirie expressed satisfaction with the results, stating that the company finished the year “larger, stronger, and more capable of delivering value to our customers.” He emphasized the importance of their diverse offerings and flexible international operating model in achieving these results.
Integration and Future Growth Prospects
The integration of the newly acquired companies, Seatronics and J2 Subsea, is reportedly progressing well, with the quality of the acquisitions exceeding expectations. Ashtead Technology disclosed that it spent £67.1 million on acquisitions, which included payments for the recent purchases and a final payment for Ace Winches. The company is also investing heavily in expanding its equipment fleet and enhancing technology centers, with £30 million allocated for these improvements.
Market Opportunities in Oil, Gas, and Renewables
As the oil and gas sector continues to grow, along with the renewables market, Ashtead Technology is well-positioned to capitalize on these trends. Mr. Pirie noted that the company delivered strong organic revenue growth of 14% in 2024 and executed its largest acquisition to date. He highlighted the significant lifting, pulling, and deployment capabilities added through the acquisition of Ace Winches, which broadened the company’s customer offerings and market reach.
Looking Ahead: Strong Pipeline of Opportunities
With a robust pipeline of revenue opportunities on the horizon, Ashtead Technology is optimistic about its future. The company has observed increased momentum in the oil and gas sector throughout 2024, while offshore renewables are experiencing significant growth in Europe and the Asia Pacific region. Mr. Pirie stated, “Our strategy remains to acquire oil and gas-focused businesses that can be repositioned to support traditional oil and gas and offshore wind markets.” This strategic focus positions Ashtead Technology for continued success and growth in the coming years.
