Ashtead Technology Holdings PLC (AIM:AT.) reported a huge jump in earnings in its first half-year results since its IPO last year.
The subsea equipment rental company, which floated on AIM in November, also announced the acquisition of WeSubsea, a specialist subsea dredging technology business, for £5.6mln.
Ashtead Technolgy posted a 233.1% jump in pre-tax profits for the first half of 2022 of £6.9mln, on a 28.5% increase in revenue to £31.7mln.
Operating profit was 85.5% higher at £7.5mln, while basic earnings per share were bumped up to 7.4p from 1.9p in the comparative period of last year.
The company said the "strong year-on-year revenue increase" was delivered through growth across all geographic markets, "enabled by higher demand" in both offshore renewables and offshore oil and gas.
While adjusted EBITDA rose 21.1% to £12.3mln, "with EBITDA margin in line with expectations", the offshore energy sector provider said gross profit margin increased to 73.4% reflecting "higher cost utilisation and improved pricing".
"As governments set out their plans to ensure energy security, investment in both oil and gas and renewables offshore infrastructure is expected to continue," said Allan Pirie, chief executive, in a statement.
The board expects fiscal 2022 to "be at least in line with market expectations".
With regards to the acquisition of WeSubsea AS, the group's sixth acquisition in the past five years, the company said the NOK 65mln (£5.6mln) consideration will be paid in cash on completion, expected to be during the fourth quarter of 2022.
The business generated revenues of £1.9mln, adjusted EBITDA of £1.1mln and adjusted EBITA of £0.9mln in 2021, with Ashtead noting the purchase would be earnings enhancing and exceed Ashtead’s cost of capital in its first full year of ownership.
Shares of the company were trading 2.30% higher at 267.00p midmorning.