Ashtead Technology (AT) H1 2024 earnings summary

Executive summary

• HY24 revenue increased 61.4% year-over-year to £80.5m, driven by 16% organic growth and 47% from the ACE Winches acquisition, partially offset by FX headwinds.

• Adjusted EBITA rose 46% to £22.6m, with margin at 28.1%, in line with expectations.

• Offshore renewables revenue grew 41.9% to £23.1m, while oil & gas revenue increased 70.9% to £57.3m.

• ACE Winches acquisition contributed significantly, with integration progressing well and a strengthening sales pipeline.

• Board remains confident in unchanged FY24 outlook, supported by strong customer backlogs and market conditions.

Financial highlights

• Revenue: £80.5m (HY24) vs £49.8m (HY23), up 61.4% year-over-year.

• Adjusted EBITA: £22.6m (HY24) vs £15.5m (HY23), margin 28.1%.

• Adjusted basic EPS: 19.1p (HY24) vs 14.0p (HY23), up 36%.

• Net debt: £72.0m (HY24) vs £26.4m (HY23); leverage 1.2x (1.0x proforma).

• ROIC stable at 25%, well above cost of capital.

Outlook and guidance

• FY24 expectations remain unchanged, with increased confidence in full-year outturn.

• Targeting low double-digit organic revenue growth in the medium term.

• Customer backlogs expanding, with execution periods extending into 2026 and beyond.

• Ongoing investment in rental fleet and international expansion, with M&A central to strategy.

• Market indicators remain strong across all regions and end markets.