LONDON, UK: Ashtead Technology has expressed intention to conduct an initial public offering at the AIM market of London Stock Exchange.
Ashtead Technology is a leading subsea equipment rental and solutions provider for the global offshore energy sector. Ashtead Technology’s specialist equipment, advanced-technologies and support services enable its customers to understand the subsea environment and manage offshore energy production infrastructure.
The Company’s service offering is applicable across the lifecycle of offshore wind farms and offshore oil and gas infrastructure. Headquartered in the UK, the Company operates globally, servicing customers from its nine international customer service hubs.
In the fast-growing offshore wind sector, Ashtead Technology’s specialist equipment and services are essential through the project development, construction and installation phase. Once wind farms are operational, Ashtead Technology supports customers with inspection, maintenance and repair (IMR). In the more mature oil and gas sector, Ashtead Technology’s focus is on IMR and decommissioning.
The Group is experiencing strong momentum across its markets, with a high level of customer activity. The strength of this underlying demand has enabled the Group to improve utilisation and raise prices towards 2019 levels. For the six months to 30 June 2021 the Group achieved year on year revenue growth of approximately 25%.
In the period since 30 June 2021, the Group has continued to perform well and the level of revenue growth achieved in the first six months of 2021 has been sustained for the three months to 31 September 2021.
The balance of the financial year to 31 December 2021 is well supported by strong customer demand which gives the Directors a high degree of confidence in the Group achieving no less than £52m of revenue, £21.5m of Adjusted EBITDA and £12.8m of Adjusted EBITA for FY21 – this represents growth of approximately 23%, 26% and 104% respectively compared to the prior year. In particular, the Group’s offshore wind sales opportunity pipeline continues to build at pace, increasing from £8.2m in April 2021 to £31.4m in September 2021.
Over the medium term the Group is targeting low double digit organic revenue growth. This is supported by an expectation of steady growth across the Group’s addressable oil and gas market and strong growth in the offshore wind market.
Allan Pirie, Chief Executive Officer, commented: “I’m delighted to announce our intention to list on AIM. Ashtead Technology has grown to become one of the most trusted providers of critical equipment and essential services for our clients across the offshore energy sector. We are now ideally placed to benefit from the huge rise in global investment into offshore wind as energy producers transition towards more renewable sources of energy. An IPO enables us to capitalise on this opportunity, strengthen our product and service offering, extend our geographic footprint and pursue further complementary acquisitions.
“I’m also very pleased to be welcoming Bill, Thomas and Tony to the Board. They bring high calibre public company and energy sector experience that will be invaluable as we seek to deliver our growth ambitions for our existing and our new shareholders.”
Bill Shannon, Independent Non-Executive Chair, commented: “Ashtead Technology has built a strong track record as a market leader in subsea equipment rental and solutions, with a rich heritage stretching over 36 years. Building on the considerable progress the business has made in recent years, we see significant opportunities to continue to augment organic growth and consolidate a highly fragmented market to create a business of further scale, and I’m thrilled to be joining at this important time.”
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