Ashtead Technology Holdings (LSE:AT.), a subsea technology solutions provider to the global offshore energy sector, reported revenue of approximately £100.2m for the six months to 30 June, up around 1% on the prior-year period.
The London-listed group said agile project execution and cost control had offset delays to client projects caused by conflict in the Middle East and softer renewables activity in Taiwan.
Adjusted EBITDA margin is expected to come in at approximately 37.8%, down from 38.7% a year earlier, with EBITA margin easing to approximately 25.0% from 27.3%, reflecting lower rental activity in the Middle East and Asia and a higher mix of lower-margin, non-rental revenue linked to project scheduling.
The board expects margins to strengthen in the seasonally stronger second half, targeting a full-year EBITA margin in the high twenties.
Ashtead Technology acquired Seadraulics, a Perth-based ROV tooling business with annual revenues below £1m, on 19 June, to expand its full-service capability in the Australian market.
Following the acquisition and net capital expenditure of £24m in the first half, leverage is expected to reach 1.4 times at 30 June, falling below 1.0 times by year end.
"The Board is comfortable with full year market expectations", assuming Middle East disruption eases through the second half and there are no major changes to project scheduling.
The group expects to publish half-year results on 1 September.
