Shares in Ashtead Technology Holdings PLC (AIM:AT.) rose 12% to 375.6p on Monday after the subsea technology group said profits for 2025 would come in ahead of market expectations, helped by stronger margins and successful integration of recent acquisitions.
The Main Market-listed company said full-year revenue is expected to be about £203 million, up from £168 million in 2024, representing growth of around 21%.
Second-half revenue was about 5% higher than the first half, reflecting improved trading conditions and the mobilisation of longer-term projects that had been delayed earlier in the year.
Ashtead said disciplined execution and a focus on the quality of revenue drove profitability, despite ongoing geopolitical and economic uncertainty affecting the offshore energy sector.
Following the acquisition of Seatronics and J2 Subsea in late 2024, the group said integration had been completed ahead of plan, with synergies delivered earlier than expected and lower-margin activities reduced.
As a result, adjusted earnings before interest, tax and amortisation margins are expected to be towards the top end of the company’s medium-term target range, delivering a full-year result slightly ahead of analyst forecasts.
The balance sheet also strengthened over the year, with leverage falling to below 1.4 times by year end. Ashtead said it expects net debt to fall below 1.0 times by the end of 2026, supported by strong cash generation and a disciplined approach to investment.