Ashtead Technology expects revenue to increase in 2024 due to mergers and acquisitions strategy
Ashtead Technology, based in Aberdeen, experienced a significant revenue increase of 52% in 2024, largely attributed to the company’s mergers and acquisitions (M&A) strategy. The subsea equipment provider reported total revenue of £168 million in 2024, a notable jump from £110.5 million in the previous year. This growth was mainly fueled by inorganic revenue, accounting for around 39% of the overall increase, while organic revenue contributed approximately 14%.
The company also saw a rise in profit before tax, reaching £36.1 million, marking a 31% increase from the previous year. Ashtead Technology has been actively pursuing its M&A strategy for several years, with key acquisitions such as WeSubsea and Hiretech in late 2022, followed by ACE Winches in November 2023. In 2024, the company made two significant acquisitions, Seatronics and J2 Subsea, in November, marking its largest deal to date. These acquisitions not only expanded the company’s equipment fleet but also increased the scale of its international operations.
Allan Pirie, the CEO of Ashtead Technology, expressed satisfaction with the company’s 2024 performance, noting that it surpassed their financial and strategic objectives. He emphasized that the group grew larger, stronger, and more capable of delivering value to customers. Pirie highlighted the significant progress made in integrating Seatronics and J2 Subsea, acquired in November, stating that the quality of these acquisitions had exceeded expectations.
Looking ahead, Pirie expressed confidence in the company’s positive momentum, given the strong financial performance in 2024, the growing backlogs reported by customers, and the robust growth fundamentals in core markets. He emphasized the potential for both continued organic growth and disciplined M&A activity to further create value for shareholders in the future.
Ashtead Technology’s board remains optimistic about the company’s performance in the first quarter of 2025, with expectations for the full year unchanged. Additionally, the board is considering a potential transition from the Alternative Investment Market to the main market after consulting with the company’s advisors and largest shareholders.
In conclusion, Ashtead Technology’s strategic M&A approach has proven successful in driving revenue growth and enhancing its capabilities. The company’s focus on expanding its offerings and international footprint through acquisitions has positioned it well for continued success and value creation in the future.
