REG - Ashtead Tech Hldgs - Half-year Report
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RNS Number : 6268W Ashtead Technology Holdings plc 26 August 2025
26 August 2025
Ashtead Technology Holdings plc
("Ashtead Technology", the "Company" or the "Group")
Unaudited Half Year Results for the Six-Months Ended 30 June 2025
Strong profitability with robust market fundamentals underpinning medium and
long-term confidence. Move to Main Market expected on 6 October
Ashtead Technology Holdings plc (AIM: AT.), a leading provider of subsea
technology solutions to the global offshore energy sector, announces its
unaudited results for the six months ended 30 June 2025 ("HY25" or "the
period").
Financial Performance (£'m)
HY25 HY24 % Movement
Revenue 99.1 80.5 23.2%
Adjusted EBITA(1) 27.0 22.6 19.7%
Adjusted EBITA % 27.3% 28.1% (81)bps
Operating profit 23.2 20.6 12.3%
Profit before tax 17.8 17.6 0.8%
Adjusted basic earnings per share(2) 21.9p 19.1p 14.5%
Basic earnings per share 17.2p 16.7p 3.0%
Return on Invested Capital (ROIC)(3) 24.2% 29.6% (540)bps
Proforma Leverage(4) 1.6x 1.1x 0.5x
HY25 summary
· Revenue for the period increased by 23.2% to £99.1m
o 22.7% inorganic growth(6)
o -0.8% FX impact
o 1.3% organic growth
· Focus on high quality rental activities drove strong Adjusted
EBITA margin performance of 27.3%
· Continued growth from both oil and gas (£73.7m of revenues) and
renewables markets (£25.4m of revenues)
· Strong compounding adjusted EPS growth of 14.5%
· Net cash generated from operating activities of £21.1m, up from
£9.7m in HY24
· ROIC significantly ahead of cost of capital at 24.2%
· Focus on deleveraging, targeting proforma net debt to Adjusted
EBITDA leverage of 1.4x by end of FY25
Operational Highlights
· Integration of Seatronics and J2 Subsea acquisitions completed in
November 2024 has delivered higher operational synergies quicker than
initially expected
· Continuing to strengthen the business and investing in talent,
technology and geographic diversification in preparation for continued growth:
o Senior leadership appointments made in Mechanical Solutions, IT and QHSE
o Capex investment in technology portfolio to strengthen market leading
proposition
o Expansion of Mechanical Solutions offering in the US with the opening of a
new facility in Houston primarily to localise and strengthen the Group's
Lifting, Pulling and Deployment capabilities in the region
o Expanding Norwegian Survey and Robotics business trading ahead of
expectations
Outlook
· Board expectations remain in line with those set out in the
trading update of 17 July 2025
· Continued confidence in medium term outlook with Rystad Energy
forecasting 8% CAGR in Ashtead Technology's total addressable market in the
period 2024-2028
· Confidence underpinned by customers' significant backlogs
· Move from AIM to Main Market expected on 6 October 2025
Allan Pirie, Chief Executive Officer, said:
"The Group has continued to deliver strong profitability and year-on-year
growth despite some market and geopolitical headwinds during the period. While
this business environment somewhat tempered activity and led to a slower
seasonal ramp up of revenues through Q2, we have been able to continue to
strengthen our business, execute on our long-term strategy and focus on
driving enhanced quality of earnings. Key projects delayed by our customers in
HY25 have now mobilised giving us additional confidence in delivering growth
in the second half. Globally, our customers continue to report sustained
record backlogs supported by significant contract awards in the period. This,
together with strong market fundamentals, underlines our confidence in the
ongoing demand for Ashtead Technology's specialist technology solutions. We
remain confident and committed to our long-term strategy for the business.
"Following our previous announcements and after extensive shareholder
consultation, the Board is pleased to confirm its intention to move the
Company's listing to the Main Market of the London Stock Exchange expected on
6 October 2025. The Board believes that the greater liquidity and broader
access to international investors offered by the Main Market will provide an
excellent platform for the next phase of Ashtead Technology's growth strategy
implementation."
Presentation
Allan Pirie, Chief Executive Officer and Ingrid Stewart, Chief Financial
Officer, will host an in-person presentation for analysts and institutional
investors at 8.00am BST today.
A live webcast will also be available for those who wish to join the
presentation virtually. Please contact ashteadtechnology@dgagroup.com
(mailto:ashteadtechnology@dgagroup.com) to attend in person or to register for
the webcast use the following link:
https://stream.brrmedia.co.uk/broadcast/68594d9f379f8200134f2459
(https://stream.brrmedia.co.uk/broadcast/68594d9f379f8200134f2459)
A replay of the analyst presentation will subsequently be made available to
watch on demand at www.ashtead-technology/investors
(https://www.ashtead-technology/investors) .
-Ends-
For further information, please contact:
Ashtead Technology (Via DGA Group)
Allan Pirie, Chief Executive Officer
Ingrid Stewart, Chief Financial Officer
Colin Ross, Chief Strategy & Marketing Officer
Deutsche Bank AG (Nomad and Joint Broker) Tel: +44 (0)20 7260 1000
Julian Cater
George Price
Kevin Cruickshank (QE)
Peel Hunt (Joint Broker)
Edward Allsopp Tel: +44 (0)20 7418 8900
Charlotte Sutcliffe
Tom Graham
DGA Group (Financial PR)
Jonathon Brill Tel: +44 (0)7566 794 033
James Styles ashteadtechnology@dgagroup.com
Fern Duncan
(1)Adjusted EBITA is defined as operating profit adjusted to add back
amortisation, foreign exchange movements and non-trading items as shown in
Note 19 of the HY25 accounts
(2)Adjusted Earnings per Share uses Adjusted profit after tax which is defined
as profit after tax adjusted to add back amortisation, foreign exchange
movements and non-trading items, and the tax impact thereof, as shown in Note
19 of the HY25 accounts
(3)Return on Invested Capital (ROIC) is defined as LTM(5) Adjusted EBITA
divided by Invested Capital. Invested Capital is defined as average net debt
plus average equity over last 12 months. HY24 calculation restated from
6-months invested capital to 12 to align calculation with full year
(4)Proforma Leverage is defined as net debt divided by LTM Adjusted Proforma
EBITDA
(5)LTM is defined as latest twelve months to 30 June 2025
(6) Inorganic growth calculation inclusive of planned reduction in equipment
sales within acquired business
Notes to editors:
Ashtead Technology is a leading subsea technology solutions provider to the
global offshore energy sector. Ashtead Technology's specialist equipment,
advanced-technologies and support services enable its customers to address the
complex challenges of constructing, developing, inspecting, maintaining,
repairing and decommissioning critical offshore energy infrastructure.
With a diverse portfolio and flexible delivery model, around 85% of Ashtead
Technology's equipment fleet of over 30,000 assets are applicable across the
lifecycle of both offshore oil and gas infrastructure and offshore renewables.
Headquartered in the UK, Ashtead Technology operates globally, servicing
customers from its facilities located in key offshore energy hubs. To learn
more, please visit www.ashtead-technology.com
(http://www.ashtead-technology.com/)
CEO Statement
After an encouraging start to the year, Ashtead Technology experienced a
slower seasonal ramp up in activity through Q2. This resulted in first half
revenues being below our initial expectations for the period at £99.1m. In
absolute terms, the business grew its revenue by 23.2% with the reduced
revenue growth influenced by a number of external factors including the US
administration's policies on tariffs and offshore wind development, military
activity in the Middle East and US dollar FX movements. In addition, the Group
proactively reduced its exposure to lower margin activities such as cross-hire
and third-party equipment sales which were particularly prevalent within the
Seatronics business acquired in November 2024.
Continued strength in market outlook
Despite the headwinds witnessed through HY25, the market fundamentals for our
business remain strong. Key customer projects delayed and suspended through
HY25 have now mobilised and our customers continue to report sustained, record
project backlogs, and have secured significant contracts in the first half of
the year. This underpins our confidence in the demand for Ashtead Technology's
specialist services and solutions.
Ashtead Technology's addressable market is forecast to grow by an 8% CAGR in
the period 2024 through 2028. Offshore oil and gas activity is forecast to
grow by 4% with significant levels of activity in areas such as the Middle
East, Norway and South America. Average annual sanctioned greenfield spend
is expected to increase to $106bn during this period, while 48% of forecast
subsea spend in 2028 is driven by projects that have already reached Final
Investment Decision (FID) phase, providing a supportive market backdrop for
many years to come.
The offshore wind market is forecast to grow at a 15% CAGR and the
decommissioning market is forecast to grow at a 14% CAGR. HY25 has seen
strong FID activity in offshore wind despite a challenging market environment,
with Europe FID in 2025 YTD reaching 5.7GW, having already surpassed 2024
volumes. This market growth gives us confidence in the scale of the
opportunity ahead and the attractive structural growth drivers in our end
markets.
We continue to capitalise on the flexibility and fungibility of our specialist
solutions, responding to customer demand in an agile way and using our global
footprint to deploy our solutions in the areas of greatest market activity.
This creates inherent resilience and means we can pivot our business quickly
to support the full field lifecycle of subsea infrastructure.
M&A integrated at pace
The Seatronics and J2 Subsea businesses, which were acquired in late November
2024, have been rapidly integrated into the wider Group, delivering higher
synergies, faster than anticipated at the time of the transaction. This
demonstrates the Group's proven track record of successful M&A
integration, validating our One Ashtead Technology approach.
Strengthening our differentiated offering
We continue to invest in our state of the art, fungible technology fleet,
strengthen our geographic presence and focus on deepening our talent pool to
enhance our competitive advantages and to better support our customers with
their mission-critical subsea operations.
£19.4m of capex was deployed into the equipment rental fleet through HY25,
adding cutting edge technologies to our Survey and Robotics service line as
well as expanding our technology development programmes within our Mechanical
Solutions and Asset Integrity service lines. Our FY25 capex spend is expected
to be c.£35m.
In the period, the Group expanded its regional footprint, opening a new
Mechanical Solutions facility in Houston which will serve as a hub for the
expansion of our Mechanical Solutions service line in the Americas including
localisation of the Group's Lifting, Pulling and Deployment capability in the
region.
We continue to gain traction in Norway, capitalising on a buoyant market in
the region. We have seen revenue more than double in our Norwegian business
through HY25 and continue to position ourselves for further growth in this
market.
Investing in talent has also been a feature of the first half of the year. In
addition to investing in our technician pool including the recruitment of 14
new trainees globally as we continue to grow our own talent, we have made
several new leadership appointments to strengthen our global business. Key
appointments include the Head of Mechanical Solutions, QHSE Director and Chief
Information Officer. Together, these roles will help to further strengthen our
focus on safety, enhance our customer offering, drive growth and increase
consistency and efficiency across the Group.
Move to the Main Market
Following our previous announcements, the Board is pleased to confirm its
intention to move the Company's listing to the Main Market of the London Stock
Exchange expected on 6 October 2025. Once complete, the Board believes that
the greater liquidity and broader access to international investors offered by
the Main Market will provide an excellent platform for the next phase of
Ashtead Technology's growth strategy implementation.
Outlook
The macro and geopolitical volatility experienced through HY25 has created
market headwinds which were reflected in the trading update provided in July.
We remain confident in our ability to execute on our strategy and based on
current trading levels and market outlook through the remainder of the year,
we are confident of delivering an outturn in line with the Board's
expectations.
Allan Pirie
Chief Executive Officer
CFO Statement
Our HY25 results were impacted by market headwinds created by geopolitical and
economic uncertainties, and, after a solid Q1, we saw a slower seasonal ramp
up in revenues in Q2. Our revenue in HY25 was £99.1m, a 23.2% increase on the
prior year, with inorganic growth of 22.7%, FX headwinds of -0.8% and organic
growth of 1.3%.
Revenue growth across all of our regions was supported by the acquisitions of
Seatronics and J2 Subsea in November 2024 which added significant scale to our
business. Whilst year-on-year growth within our Americas business was 15%,
this region fell significantly short of expectations in HY25 due to a
combination of the cessation of work on US offshore wind projects resulting
from the new US administration's change in energy policy and the introduction
of US tariffs which caused a pause in investment decisions and delayed
decision making by operators and customers. Our other regions saw higher
revenue growth on the prior year with Europe growing 17% and APAC growing 70%.
The Middle East grew 44% despite a slight trading interruption in June as a
result of military activity in the region.
A deliberate focus on quality of earnings saw a faster than expected reduction
in third party equipment sales from the acquired Seatronics business. This
contributed to the lower-than-expected revenues but supported a strong Group
margin performance with an EBITDA margin of 38.7% and an EBITA margin of
27.3%.
Expenses
The Group has changed the presentation of expenses in its income statement to
enhance the reader's understanding of the operations and performance of the
Group through providing more relevant information on the face of the income
statement.
External costs directly relating to revenue of £25.7m compares to £19.5m in
HY24 with the increase being representative of the increased revenues in the
period.
Staff costs of £27.5m represent 27.8% of revenues compares to £23.9m or
29.7% of revenues in HY24. Employee numbers at the end of June 2025 were 637
compared to 650 at December 2024 reflecting rationalisation of the employee
base since the year end following the integration of Seatronics and J2 Subsea.
Other operating costs of £9.5m compares to £6.6m in HY24 with the largest
increase coming from facility costs, insurance and IT costs commensurate with
a larger business. Some of these costs are expected to reduce through the
second half of the year as the synergies achieved through the Seatronics and
J2 Subsea integration are fully realised.
Profitability
The Group achieved operating profit of £23.2m (HY24: £20.6m). This includes
c. £0.6m of exceptional costs in the period, predominantly relating to
acquisition integration and professional fees relating to the move from AIM to
the Main Market.
Adjusted EBITA of £27.0m (HY24: £22.6m) represents an EBITA margin of 27.3%
compared to 28.1% in HY24. The EBITA margin achieved through H1 was ahead of
our expectations with the decrease on HY24 on a reported basis due to the
impact of adding Seatronics and J2 Subsea into the Group.
ROIC remains significantly ahead of our cost of capital at 24.2% with the
reduction since year end being the result of the increased invested capital
owing to the timing of the Seatronics and J2 Subsea transaction.
Net finance costs of £5.4m compares to £3.0m in HY24 with the increase being
the result of funding the Seatronics and J2 Subsea acquisitions entirely from
RCF.
Adjusted Profit Before Tax of £21.6m compares to £19.6m in HY24, an increase
of 10%.
The tax provision for the period was £3.9m (HY24: £4.3m) representing an
effective tax rate of 22.0% (HY24: 24.2%), a decrease on prior year due to a
higher proportion of profits being generated in lower tax jurisdictions.
Adjusted basic earnings per share of 21.9p compares to 19.1p in HY24, an
increase of 14.5%.
Cash flow and balance sheet
Net cash generated from operating activities was £21.1m, up from £9.7m in
HY24. Working capital represented 17% of proforma TTM (trailing twelve months)
revenues compared to 14% at June 2024 and 16% at December 2024. Our increase
in stock during the period follows a period of investment in our manipulator
repair and cable moulding offerings which we acquired through the Seatronics
and J2 Subsea transaction.
Overall net debt of £131.9m is higher than the prior year owing to funding of
the Seatronics and J2 Subsea transaction and represents leverage of 1.6x on a
proforma basis. With a disciplined focus on cash management, we anticipate
that leverage will reduce to around 1.4x by year end.
Continued investment in our equipment fleet has resulted in an increase in
fixed asset net book value (NBV) from £87.3m at FY24 to £95.9m. Overall net
assets increased to £137.9m, up £10.5m on FY24.
Our full year dividend for 2024 was paid in May 2025 and in line with previous
periods the Group's capital allocation policy remains unchanged with a focus
on organic and inorganic investment in growth. Consistent with the prior
year, the Board has not recommended an interim dividend for HY25. In line with
previous guidance the Board intends to continue its small, progressive
dividend policy.
Ingrid Stewart
Chief Financial Officer
RESPONSIBILITY STATEMENT OF THE DIRECTORS IN RESPECT OF THE
HALF-YEARLY FINANCIAL REPORT
The Directors of Ashtead Technology Holdings plc (set out on page 36 and 37 of
the latest Annual Report and Accounts) confirm that to the best of their
knowledge:
• the condensed consolidated set of financial statements
have been prepared in accordance with IAS 34 Interim Financial Reporting as
adopted for use in the UK;
• the interim management report includes a fair review of
the information required by:
(i) DTR 4.2.7R of the Disclosure Guidance and Transparency Rules,
being an indication of important events that have occurred during the first
six months of the financial year and their impact on the condensed
consolidated set of financial statements; and a description of the principal
risks and uncertainties for the remaining six months of the year; and
(ii) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules,
being related party transactions that have taken place in the first six months
of the current financial year and that have materially affected the financial
position or performance of the entity during that period; and any changes in
the related party transactions described in the last annual report that could
do so.
By order of the Board of Directors
Allan Pirie Ingrid Stewart
Chief Executive Officer Chief Financial Officer
25 August 2025 25 August 2025
Consolidated income statement
for the six-month period ended 30 June 2025
Unaudited Unaudited Audited
six months to 30 June 2025 six months to 30 June 2024 year ended 31 December 2024
Notes £000 £000 £000
Revenue 2 99,135 80,452 168,044
External costs directly relating to revenue 2 (25,734) (19,470) (38,624)
Staff costs 2 (27,535) (23,857) (48,427)
Other operating costs 2 (9,541) (6,648) (16,379)
Depreciation 2, 6, 14 (11,377) (8,839) (19,125)
Amortisation of intangible assets 2, 7 (2,994) (1,823) (3,841)
Impairment loss on trade receivables 2 − − (927)
Other operating income 2 1,203 808 2,072
Operating profit 2 23,157 20,623 42,793
Finance income 3 39 83 193
Finance costs 3 (5,415) (3,074) (6,923)
Profit before taxation 17,781 17,632 36,063
Taxation charge 4 (3,912) (4,271) (7,285)
Profit for the financial period 13,869 13,361 28,778
Profit attributable to:
Equity shareholders of the Company 13,869 13,361 28,778
Earnings per share
Basic 5 17.2 16.7 35.9
Diluted 5 17.1 16.5 35.4
The below financial measures are Alternative Performance Measures used by
management and are not an IFRS disclosure:
Adjusted EBITDA^ 19 38,397 31,418 69,451
Adjusted EBITA^^ 19 27,020 22,579 50,326
Adjusted Profit Before Tax^^^ 19 21,644 19,588 43,596
Adjusted Profit After Tax^^^^ 19 17,587 15,292 36,109
^ Adjusted EBITDA is calculated as earnings before interest,
tax, depreciation, amortisation, foreign exchange gains and losses, and items
considered one-off in nature, is an Alternative Profit Measure used by
management and is not an IFRS disclosure. See Note 19 to the condensed
consolidated interim financial statements for calculations.
^^ Adjusted EBITA is calculated as earnings before interest,
tax, amortisation, foreign exchange gains and losses, and items considered
one-off in nature, is an Alternative Profit Measure used by management and is
not an IFRS disclosure. See Note 19 to the condensed consolidated interim
financial statements for calculations.
^^^ Adjusted Profit Before Tax is calculated as profit before tax
adjusted for amortisation, foreign exchange gains and losses, and items
considered one-off in nature, is an Alternative Profit Measure used by
management and is not an IFRS disclosure. See Note 19 to the condensed
consolidated interim financial statements for calculations.
^^^^ Adjusted Profit After Tax is calculated as profit after tax
adjusted for amortisation, foreign exchange gains and losses, and items
considered one-off in nature, all adjusted for tax, is an Alternative Profit
Measure used by management and is not an IFRS disclosure. See Note 19 to the
condensed consolidated interim financial statements for calculations.
All results derive from continuing operations.
Consolidated statement of comprehensive income
for the six-month period ended 30 June 2025
Unaudited Unaudited Audited
six months to 30 June 2025 six months to 30 June 2024 year ended
31 December 2024
£000 £000 £000
Profit for the period 13,869 13,361 28,778
Other comprehensive (loss)/income:
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations (2,884) (118) 375
Other comprehensive (loss)/income for the period, net of tax (2,884) (118) 375
Total comprehensive income 10,985 13,243 29,153
Total comprehensive income attributable to:
Equity shareholders of the Company 10,985 13,243 29,153
Consolidated balance sheet
at 30 June 2025
Unaudited Unaudited Audited
as at as at as at
30 June 2025 30 June 2024 31 December 2024
Notes £000 £000 £000
Non-current assets
Property, plant and equipment 6 95,908 76,499 87,325
Goodwill 7 111,765 77,697 112,183
Intangible assets 7 31,960 15,886 34,954
Right-of-use assets 14 4,212 2,128 2,627
Deferred tax asset 272 52 272
244,117 172,262 237,361
Current assets
Inventories 8 13,034 4,630 7,766
Trade and other receivables 9 56,932 44,925 52,975
Income tax recoverable 421 223 2,333
Cash and cash equivalents 11,959 6,256 12,168
82,346 56,034 75,242
Assets classified as held for sale 10 − − 1,000
326,463 228,296 313,603
Total assets
Current liabilities
Trade and other payables 11 33,660 29,815 33,680
Income tax payable − − 1,273
Loans and borrowings 12 − 20 9
Lease liabilities 14 1,450 970 1,129
35,110 30,805 36,091
Non-current liabilities
Loans and borrowings 12 139,390 75,909 137,669
Lease liabilities 14 3,042 1,313 1,716
Deferred tax liability 10,691 9,198 10,356
Provisions for liabilities 367 642 443
153,490 87,062 150,184
Total liabilities 188,600 117,867 186,275
Equity
Share capital 17 4,031 4,016 4,016
Share premium 17 14,115 14,115 14,115
Merger reserve 17 9,435 9,435 9,435
Share based payment reserve 17 4,271 3,230 3,612
Foreign currency translation reserve 17 (3,174) (783) (290)
Retained earnings 17 109,185 80,416 96,440
Total equity 137,863 110,429 127,328
326,463 228,296 313,603
Total equity and liabilities
Consolidated statement of changes in equity
for the six-month period ended 30 June 2025
Share capital Share premium Merger reserve Share based payment reserve Foreign currency translation reserve Retained earnings Total
£000 £000 £000 £000 £000 £000 £000
At 1 January 2024 audited 3,997 14,115 9,435 2,538 (665) 68,166 97,586
Profit for the period − − − − − 13,361 13,361
Other comprehensive loss − − − − (118) − (118)
Total comprehensive income − − − − (118) 13,361 13,243
Share based payment charge − − − 692 − − 692
Tax on share based payment charge − − − − − (209) (209)
Issue of shares 19 − − − − (19) −
Dividends paid − − − − − (883) (883)
At 30 June 2024 unaudited 4,016 14,115 9,435 3,230 (783) 80,416 110,429
Profit for the period − − − − − 15,417 15,417
Other comprehensive income − − − − 493 − 493
Total comprehensive income − − − − 493 15,417 15,910
Share based payment charge − − − 382 − − 382
Tax on share based payment charge − − − − − 607 607
At 31 December 2024 audited 4,016 14,115 9,435 3,612 (290) 96,440 127,328
Profit for the period − − − − − 13,869
13,869
Other comprehensive loss − − − − (2,884) − (2,884)
Total comprehensive income − − − − (2,884) 13,869 10,985
Share based payment charge − − − 659 − − 659
Tax on share based payment charge − − − − − (144) (144)
Issue of shares 15 − − − − (15) −
Dividends paid − − − − − (965) (965)
At 30 June 2025 unaudited 4,031 14,115 9,435 4,271 (3,174) 109,185 137,863
Consolidated cash flow statement
for the six-month period ended 30 June 2025
Unaudited Unaudited Audited
six months to 30 June 2025 six months to 30 June 2024 year ended
31 December 2024
Notes £000 £000 £000
Cash generated from operating activities
Profit before taxation 17,781 17,632 36,063
Adjustments to reconcile profit before taxation to net cash from operating
activities
Finance income 3 (39) (83) (193)
Finance costs 3 5,415 3,074 6,923
Depreciation 6, 14 11,377 8,839 19,125
Amortisation of intangible assets 7 2,994 1,823 3,841
Gain on sale of property, plant and equipment (1,203) (807) (2,072)
Share based payment charges 1,129 961 1,326
Provision for bad debts movement − − 779
Provision for liabilities movement (63) 287 86
Cash generated before changes in working capital 37,391 31,726 65,878
Increase in inventories (5,310) (571) (1,167)
Increase in trade and other receivables (6,094) (13,096) (14,247)
Increase/(decrease) in trade and other payables 2,348 909 (3,947)
Cash inflow from operations 28,335 18,968 46,517
Interest paid (4,908) (2,837) (6,380)
Tax paid (2,335) (6,410) (10,020)
Net cash generated from operating activities 21,092 9,721 30,117
Cash flow used in investing activities
Purchase of property, plant and equipment (20,484) (16,611) (29,388)
Proceeds from customer loss/damage of assets held for rental 2,552 1,227 2,955
Acquisition of subsidiary undertakings net of cash acquired (1,272) (3,897) (67,056)
Proceeds on disposal of assets held for sale 550 − −
Interest received 39 83 193
Net cash used in investing activities (18,615) (19,198) (93,296)
Cash flow (used in)/generated from financing activities
Loans received 5,000 11,300 84,300
Transaction fees on loans received − (189) (1,158)
Repayment of bank loans (3,589) (5,000) (15,493)
Payment of lease liability (1,054) (772) (1,428)
Payment of finance lease liability (9) (11) (22)
Dividends paid (965) (883) (883)
Net cash (used in)/generated from financing activities (617) 4,445 65,316
Net increase/(decrease) in cash and cash equivalents 1,860 (5,032) 2,137
Cash and cash equivalents at beginning of the period 12,168 10,824 10,824
Net foreign exchange difference (2,069) 464 (793)
Cash and cash equivalents at end of the period 11,959 6,256 12,168
Notes to the consolidated interim financial statements
1. General information
Background
Ashtead Technology Holdings plc (the "Company") is a public limited company
incorporated in the United Kingdom under the Companies Act 2006, whose shares
are traded on AIM. The condensed consolidated interim financial statements
of the Company for the six-month period ended 30 June 2025 comprise the
Company and its interest in subsidiaries (together referred to as the
"Group"). The Company is domiciled in the United Kingdom and its registered
address is C/O Amba Company Secretarial Services Limited, 4(th) Floor, One
Kingdom Street, Paddington Central, London, W2 6BD, United Kingdom. The
Company registration number is 13424040.
Basis of preparation
The annual consolidated financial statements of Ashtead Technology Holdings
plc will be prepared in accordance with UK-adopted International Accounting
Standards. These condensed consolidated interim financial statements for the
six-month period ended 30 June 2025 have been prepared in accordance with UK
adopted International Accounting Standard ("IAS") 34, 'Interim Financial
Reporting' and the Disclosure and Transparency Rules of the United Kingdom's
Financial Conduct Authority.
The financial information for the six-month period ended 30 June 2025 is
unaudited. It does not constitute statutory financial statements within the
meaning of Section 434 of the Companies Act 2006. This report should be read
in conjunction with the Group's Annual Report and Accounts as at and for the
year ended 31 December 2024 ("last Annual Report and Accounts"), which were
prepared in accordance with UK-adopted International Accounting Standards.
The last Annual Report and Accounts have been filed with the Registrar of
Companies and are available from the Group's website
(www.ashtead-technology.com (http://www.ashtead-technology.com) ). The
auditors' report on those accounts was unqualified, did not draw attention to
any matters by way of emphasis, and did not contain a statement under 498(2)
or 498(3) of the Companies Act 2006.
The condensed consolidated interim financial statements unless otherwise
stated are presented in sterling, to the nearest thousand. The functional
currency of the Group is sterling.
The condensed consolidated interim financial statements were approved by the
Board of Directors on 25 August 2025.
Accounting policies
The condensed consolidated interim financial statements have been prepared in
accordance with the accounting policies set out on pages 81-87 of the last
Annual Report and Accounts.
Taxation
Tax on income in the interim periods are accrued using management's best
estimate of the weighted average annual tax rate that would be applicable to
expected total annual earnings.
Change of accounting policy
Management decided to change the presentation of expenses in the income
statement from by function to by nature. This change has been applied
retrospectively, and the comparative period Income Statements have been
restated. This change in presentation has been made to enhance the reader's
understanding of the operations and performance of the Group through providing
more relevant information on the face of the income statement that will allow
the user to analyse cost movements year on year and the key drivers that
affect the Group's profit or loss each year. There is no change in the
comparative amount for revenue or operating profit as disclosed in the 2024
annual report and financial statements or unaudited half year results for the
six-months ended 30 June 2024 due to the change in accounting policy.
Critical accounting judgements and estimates
In preparing these condensed consolidated interim financial statements,
management has made judgements, estimates and assumptions that affect the
application of the accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ from these
estimates. Estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to estimates are recognised prospectively.
The areas of judgement and estimate which have the greatest potential effect
on the amounts recognised in these financial statements are the provision for
bad debts and inventory provision. This is consistent with matters disclosed
on pages 86-77 of the last Annual Report and Accounts.
Standards, amendments, and interpretations not yet effective
A number of amendments and interpretations have been issued which are not
expected to have any significant impact on the accounting policies and
reporting.
Standards and amendments effective for the period
There are no new or amended standards or interpretations from 1 January 2025
onwards that have a significant impact on the accounting policies and
reporting.
Going concern
These condensed consolidated financial statements of the Group are prepared on
a going concern basis. The Directors of the Group assert that the
preparation of the condensed consolidated financial statements on a going
concern basis is appropriate, which is based upon a review of the future
forecast performance of the Group for an eighteen-month period ending 31
December 2026.
During the six months ended 30 June 2025 the Group has continued to generate
positive cash flow from operating activities, has a cash and cash equivalents
balance of £11,959,000 at 30 June 2025 (31 December 2024: £12,168,000) and
access to a multi currency RCF with total commitments of £170,000,000. In
addition, the Group has the ability to call upon an additional accordion
facility of £40,000,000 subject to credit approval. The RCF and accordion
facility expire in April 2028. As at 30 June 2025 the RCF had an undrawn
balance of £29,271,000 and the £40,000,000 accordion facility was undrawn.
The Facility Agreement is subject to a leverage covenant of 3.0x and an
interest cover covenant of 4:1, which are both to be tested on a quarterly
basis. The Group has complied with all covenants from entering the Facility
Agreement until the date of these financial statements.
The Group monitors its funding and liquidity position throughout the period to
ensure it has sufficient funds to meet its ongoing cash requirements. Cash
forecasts are produced based on a number of inputs such as estimated revenues,
margins, overheads, collection and payment terms, capex requirements and the
payment of interest and capital on its existing debt facilities.
Consideration is also given to the availability of bank facilities. In
preparing these forecasts, the Directors have considered the principal risks
and uncertainties to which the business is exposed.
Taking account of reasonable changes in trading performance and bank
facilities available, the application of severe but plausible downside
scenarios to the forecasts, the cash forecasts prepared by management and
reviewed by the Directors indicate that the Group is cash generative and has
adequate financial resources to continue to trade for the foreseeable future
and to meet its obligations as they fall due.
2. Segmental analysis
The Chief Operating Decision Maker (CODM) is determined as the Group's Board
of Directors. The Group's Board of Directors reviews the internal management
reports of each geographic region monthly as part of the monthly management
reporting. The operations within each of the regional segments display
similar economic characteristics. There are no reportable segments which
have been aggregated for the purpose of the disclosure of segment information.
The Group operates in the following four geographic regions, which have been
determined as the Group's reportable segments. The operations of each
geographic region are similar.
· Europe
· Americas
· Asia-Pacific
· Middle East
Unaudited for the six-month period ended 30 June 2025
Asia Middle Head
Europe Americas Pacific East Office Total
£000 £000 £000 £000 £000 £000
Total revenue 65,585 14,146 11,617 7,787 - 99,135
External costs directly relating to revenue (15,206) (5,201) (3,833) (1,494) - (25,734)
Staff costs (16,639) (4,000) (1,665) (1,273) (3,958) (27,535)
Other operating costs* (5,239) (1,244) (682) (530) (1,560) (9,255)
Other operating income** 916 135 123 29 - 1,203
-------- -------- -------- -------- -------- --------
Operating profit before depreciation, amortisation and foreign exchange 29,417 3,836 5,560 4,519 (5,518) 37,814
gain/(loss)
Foreign exchange gain/(loss) 718 (907) (525) (1,032) 1,460 (286)
Depreciation (8,065) (1,456) (1,162) (620) (74) (11,377)
Amortisation of intangible assets (2,778) (110) (73) (33) - (2,994)
-------- -------- -------- -------- -------- --------
Operating profit 19,292 1,363 3,800 2,834 (4,132) 23,157
Finance income 39
Finance costs (5,415)
--------
Profit before taxation 17,781
Taxation charge (3,912)
--------
Profit for the financial period 13,869
--------
Total assets 248,563 30,467 20,620 13,180 13,633 326,463
Total liabilities 29,723 5,428 4,276 1,772 147,401 188,600
Unaudited for the six-month period ended 30 June 2024
Asia Middle Head
Europe Americas Pacific East Office Total
£000 £000 £000 £000 £000 £000
Total revenue 55,969 12,256 6,831 5,396 - 80,452
External costs directly relating to revenue (12,806) (3,841) (1,402) (1,421) - (19,470)
Staff costs (14,887) (2,947) (1,314) (881) (3,828) (23,857)
Other operating costs* (3,595) (839) (322) (225) (1,637) (6,618)
Other operating income** 482 177 70 79 - 808
-------- -------- -------- -------- -------- --------
Operating profit before depreciation, amortisation and foreign exchange 25,163 4,806 3,863 2,948 (5,465) 31,315
gain/(loss)
Foreign exchange gain/(loss) 62 (38) (4) (65) 15 (30)
Depreciation (6,500) (1,102) (667) (493) (77) (8,839)
Amortisation of intangible assets (1,823) - - - - (1,823)
-------- -------- -------- -------- -------- --------
Operating profit 16,902 3,666 3,192 2,390 (5,527) 20,623
Finance income 83
Finance costs (3,074)
--------
Profit before taxation 17,632
Taxation charge (4,271)
--------
Profit for the financial period 13,361
--------
Total assets 176,080 21,842 12,347 10,507 7,520 228,296
Total liabilities 27,535 4,897 1,722 1,071 82,642 117,867
* Excluding foreign exchange gain/(loss)
** Other operating income relates to the gain on sale of property,
plant and equipment and arises from compensation from third parties for items
of property, plant and equipment that were lost, given up or damaged beyond
repair by customers. The gross compensation proceeds are disclosed in the
consolidated cash flow statement.
Audited for the year ended 31 December 2024
Asia Middle Head
Europe Americas Pacific East Office Total
£000 £000 £000 £000 £000 £000
Total revenue 114,295 25,765 15,628 12,356 - 168,044
External costs directly relating to revenue (22,775) (8,662) (3,773) (3,414) - (38,624)
Staff costs (30,454) (5,990) (2,473) (2,040) (7,470) (48,427)
Other operating costs* (8,610) (2,658) (1,401) (792) (3,574) (17,035)
Other operating income** 1,089 403 324 256 - 2,072
-------- -------- -------- -------- -------- --------
Operating profit before depreciation, amortisation and foreign exchange 53,545 8,858 8,305 6,366 (11,044) 66,030
gain/(loss)
Foreign exchange (loss)/gain (432) 45 38 66 12 (271)
Depreciation (14,108) (2,384) (1,419) (1,074) (140) (19,125)
Amortisation of intangible assets (3,805) (18) (12) (6) - (3,841)
-------- -------- -------- -------- -------- --------
Operating profit 35,200 6,501 6,912 5,352 (11,172) 42,793
Finance income 193
Finance costs (6,923)
--------
Profit before taxation 36,063
Taxation charge (7,285)
--------
Profit for the financial period 28,778
--------
245,525 24,799 16,452 13,154 13,673 313,603
Total assets
Total liabilities 28,673 5,143 3,942 1,919 146,598 186,275
* Excluding foreign exchange gain/(loss)
** Other operating income relates to the gain on sale of property,
plant and equipment and arises from compensation from third parties for items
of property, plant and equipment that were lost, given up or damaged beyond
repair by customers. The gross compensation proceeds are disclosed in the
consolidated cash flow statement.
Central administrative expenses represent expenditures which are not directly
attributable to any single operating segment. The expenditure has not been
allocated to individual operating segments.
The revenues generated by each geographic segment almost entirely comprise
revenues generated in a single country. Revenues in the Europe, Americas, Asia
Pacific and Middle East segments are almost entirely generated in the UK, USA,
Singapore and UAE respectively. Revenues generated outside of these
jurisdictions are not material to the Group. The basis for the allocation of
revenues to individual countries is dependent upon the facility from which the
equipment is provided.
No single customer or group of customers under common control account for 15%
or more of Group revenue.
The carrying value of non-current assets, other than deferred tax assets,
split by the country in which the assets are held is as follows:
Unaudited Unaudited Audited
as at 30 June as at 30 June as at 31 December
2025 2024 2024
£000 £000 £000
UK 201,378 142,128 204,805
USA 20,954 14,596 14,709
Singapore 13,959 8,664 10,589
UAE 7,554 6,822 6,986
3. Finance income and costs
Unaudited Unaudited Audited
six months to 30 June 2025 six months to 30 June 2024 year ended 31 December 2024
Finance income £000 £000 £000
Bank interest receivable 39 83 193
Unaudited Unaudited Audited year ended
six months to 30 June 2025 six months to 30 June 2024 31 December 2024
Finance costs £000 £000 £000
Interest on bank loans (held at amortised cost) 4,908 2,788 6,275
Amortisation of deferred finance costs 383 171 445
Interest expense on lease liability (Note 14) 124 60 131
Other interest and charges - 55 72
5,415 3,074 6,923
4. Tax
The tax expense for the six-month period ended 30 June 2025 is based upon
management's best estimate of the weighted average annual tax rate expected
for each jurisdiction for the full year ending 31 December 2025 applied to the
profit before tax for the interim period. The effective tax rate for the
six-month period ended 30 June 2025 is 22.0% and the income tax expense is
lower than the standard UK rate of 25% for the period due to lower tax rates
in overseas jurisdictions. The effective tax rate for the year ended 31
December 2024 was 20.2% and the income tax expense was lower than the standard
UK rate of 25% during 2024 due to lower tax rates in overseas jurisdictions.
5. Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the earnings attributable
to ordinary shareholders by the weighted average number of Ordinary Shares in
issue during the period.
Diluted earnings per share
For diluted earnings per share, the weighted average number of Ordinary Shares
in issue is adjusted to assume conversion of all potentially dilutive Ordinary
Shares. The Group has potentially dilutive Ordinary Shares arising from
share options granted to employees under the share schemes as detailed in Note
16 of these condensed consolidated interim financial statements.
Adjusted earnings per share
Earnings attributable to ordinary shareholders of the Group for the period,
adjusted to remove the impact of adjusting items and the tax impact of these,
divided by the weighted average number of Ordinary Shares outstanding during
the period.
Unaudited Unaudited Unaudited Unaudited Audited Audited
Adjusted Statutory Adjusted Statutory Adjusted Statutory
Six months Six months to 30 June 2025 Six months Six months to 30 June 2024 Year ended 31 December 2024 Year ended
to 30 June 2025 to 30 June 2024 31 December 2024
Earnings attributable to equity shareholders of the Group:
Profit for the period (£000) 17,587* 13,869 15,292* 13,361 36,109* 28,778
Number of shares:
Weighted average number of Ordinary Shares at period end 80,480,162 80,480,162 80,098,710 80,098,710 80,206,862 80,206,862
Add dilutive effect of share based payment plans 638,877 638,877 1,112,794 1,112,794 1,038,979 1,038,979
Weighted average number of Ordinary Shares for calculating diluted earnings 81,119,039 81,119,039 81,211,504 81,211,504 81,245,841 81,245,841
per share at period end
Earnings per share attributable to equity holders of the Group - continuing
operations:
Basic earnings per share (pence) 21.9 17.2 19.1 16.7 45.0 35.9
Diluted earnings per share (pence) 21.7 17.1 18.8 16.5 44.4 35.4
* Refer to Note 19 for the reconciliation of Alternative
Performance Measures.
6. Property, plant and equipment
Assets held for rental Assets Leasehold improvements Freehold property Fixtures and fittings Motor vehicles Total
under construction
£000 £000 £000 £000 £000 £000 £000
Cost:
At 1 January 2024 audited 160,662 506 2,180 3,144 5,467 376 172,335
Additions 15,201 1,168 − 249 246 − 16,864
Disposals (2,150) - − − (102) (21) (2,273)
Foreign exchange movements (1,357) - (14) 114 (1) (10) (1,268)
At 30 June 2024 unaudited 172,356 1,674 2,166 3,507 5,610 345 185,658
Acquisitions 7,327 − 34 − 49 − 7,410
Fair value adjustment on acquisitions 364 − (15) − 62 − 411
Additions 9,765 2,295 350 − 586 - 12,996
Transfer 1,063 (1,063) − − − − −
Disposals (3,743) - (541) - (415) (74) (4,773)
Reclass to assets classified for sale (377) - - - - - (377)
Foreign exchange movements 1,385 - 5 1 (21) 4 1,374
At 31 December 2024 audited 188,140 2,906 1,999 3,508 5,871 275 202,699
Additions 19,439 751 134 - 404 - 20,728
Disposals (22,420) - (354) - (2,039) - (24,813)
Transfer 3,463 (3,463) - - - - -
Foreign exchange movements (3,264) - (20) - (110) (12) (3,406)
At 30 June 2025 unaudited 185,358 194 1,759 3,508 4,126 263 195,208
Accumulated depreciation:
At 1 January 2024 audited (97,656) - (1,831) (101) (3,773) (267) (103,628)
Charge for the period (7,563) - (79) (20) (510) (23) (8,195)
Disposals 1,849 - - - 97 21 1,967
Foreign exchange movements 666 - 12 17 (1) 3 697
At 30 June 2024 unaudited (102,704) - (1,898) (104) (4,187) (266) (109,159)
Charge for the period (9,348) - (54) (45) (192) (16) (9,655)
Disposals 3,228 - 540 - 401 74 4,243
Foreign exchange movements (719) - (30) 22 (66) (10) (803)
At 31 December 2024 audited (109,543) - (1,442) (127) (4,044) (218) (115,374)
Charge for the period (9,927) - (111) (28) (297) (30) (10,393)
Disposals 21,457 - 355 - 2,043 - 23,855
Foreign exchange movements 2,509 - 13 - 73 17 2,612
At 30 June 2025 unaudited (95,504) - (1,185) (155) (2,225) (231) 99,300
Net book value:
At 31 December 2023 audited 63,006 506 349 3,043 1,694 109 68,707
At 30 June 2024 unaudited 69,652 1,674 268 3,403 1,423 79 76,499
At 31 December 2024 audited 78,597 2,906 557 3,381 1,827 57 87,325
At 30 June 2025 unaudited 89,854 194 574 3,353 1,901 32 95,908
7. Goodwill and intangible assets
Goodwill Customer relationships Trade name Non-compete arrangements Documented processes Computer software Total
£000 £000 £000 £000 £000 £000 £000
Cost: 77,739 17,366 544 4,616 1,377 2,647 104,289
At 1 January 2024 audited
Foreign exchange movements (42) − − − − − (42)
At 30 June 2024 unaudited 77,697 17,366 544 4,616 1,377 2,647 104,247
Acquisitions 34,426 21,086 − − − − 55,512
Disposals − − − − − (2,634) (2,634)
Foreign exchange movements 60 − − − − (5) 55
At 31 December 2024 audited 112,183 38,452 4,616 1,377 8 157,180
544
Foreign exchange movements (418) − − − − − (418)
At 30 June 2025 unaudited 111,765 38,452 544 4,616 1,377 8 156,762
Amortisation:
At 1 January 2024 audited − (5,784) (23) (376) (11) (2,647) (8,841)
Charge for the period − (1,159) (136) (459) (69) − (1,823)
At 30 June 2024 unaudited − (6,943) (159) (835) (80) (2,647) (10,664)
Charge for the period − (1,355) (136) (459) (68) − (2,018)
Disposals − − − − − 2,634 2,634
Foreign exchange movements − − − − − 5 5
At 31 December 2024 audited − (8,298) (295) (1,294) (148) (8) (10,043)
Charge for the period − (2,330) (136) (459) (69) − (2,994)
At 30 June 2025 unaudited − (10,628) (431) (1,753) (217) (8) (13,037)
Net book value:
At 31 December 2023 audited 77,739 11,582 521 4,240 1,366 − 95,448
At 30 June 2024 unaudited 77,697 10,423 385 3,781 1,297 − 93,583
At 31 December 2024 audited 112,183 30,154 249 3,322 1,229 − 147,137
At 30 June 2025 unaudited 111,765 27,824 113 2,863 1,160 − 143,725
Goodwill has arisen on the acquisition of the following subsidiaries: Amazon
Group Limited (the parent company of the existing Ashtead Technology Group at
the time of acquisition in April 2016), TES Survey Equipment Services LLC,
Welaptega Marine Limited, Aqua-Tech Solutions LLC and its subsidiary Alpha
Subsea LLC, Underwater Cutting Solutions Limited, WeSubsea AS and its
subsidiary WeSubsea UK Limited, Hiretech Limited, Rathmay Limited and its
subsidiaries Alfred Cheyne Engineering Limited, ACE Winches Inc, ACE Winches
DMCC and ACE Winches Norge AS and Seascan Limited and J2 Subsea Limited and
their subsidiaries Geoscan Group Limited, Seatronics Inc, Seatronics PTE
Limited and Seatronics Limited, as well as the acquisition of the trade and
assets of Forum Subsea Rentals, a division of Forum Energy Technologies (UK)
Limited, Forum Energy Asia Pacific PTE Ltd and Forum US, Inc.
The Group tests annually for impairment, or more frequently if there are
indicators that goodwill might be impaired.
For each of the operating segments to which goodwill has been allocated, the
recoverable amount has been determined on the basis of a value in use
calculation. In each case, the value in use was found to be greater than the
carrying amount of the group of CGUs to which the goodwill has been
allocated. Accordingly, no impairment to goodwill has been recognised. The
value in use has been determined by discounting future cash flows forecast to
be generated by the relevant regional segment. The key assumptions on which
management has based its cash flow projections are the same as those used in
the last Annual Report and Accounts.
8. Inventories
Unaudited Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
£000 £000 £000
Raw materials and consumables 13,034 4,630 7,766
The cost of inventories recognised as an expense and included in cost of sales
during the period was £4,963,000 (H1 2024: £4,657,000). The impairment
gain recognised as an expense during the period was £13,000 (H1 2024:
£3,000 gain).
9. Trade and other receivables
Unaudited Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
£000 £000 £000
Trade receivables 46,828 31,758 46,330
Prepayments 7,227 4,048 4,933
Contract assets 310 − 356
Accrued income 2,567 9,119 1,356
56,932 44,925 52,975
The Directors consider that the carrying amount of trade receivable and
accrued income approximates to fair value. The impairment gain recognised in
the income statement during the period was £610,000 (H1 2024: £14,000 gain).
10. Assets classified as held for sale
Unaudited Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
£000 £000 £000
Current − − 623
Non-current − − 377
− − 1,000
At 31 December 2024, all assets classified as held for sale relate to the
Europe CGU. The current assets classified as held for sale relate to
inventory and the non-current assets classified as held for sale relate to
assets held for rental within property, plant and equipment. Management
assessed it was highly probable that the assets classified as held for sale
would be sold and the sale of the assets completed on 31 January 2025.
During the period ended 30 June 2025, proceeds on disposal of assets held for
sale of £550,000 were recognised in the cash flow statement and additional
proceeds of £450,000 are due to be received before 31 December 2025. No
gain or loss has been recognised in the income statement for the period ended
30 June 2025.
11. Trade and other payables
Unaudited Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
£000 £000 £000
Trade payables 11,705 10,258 10,039
Contract liabilities 672 − −
Accruals 21,283 19,557 23,641
33,660 29,815 33,680
The Directors consider that the carrying amount of trade payable and accruals
equates to fair value.
12. Loans and borrowings
Unaudited Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
Current £000 £000 £000
Bank loans (held at amortised cost) − − −
Finance lease liability − 20 9
− 20 9
Non-current
Bank loans (held at amortised cost) 139,390 75,909 137,669
At 30 June 2025 the bank loans comprise a revolving credit facility of
£140,729,000 (H1 2024: £76,937,000) (of which £729,000 is denominated in
USD (H1 2024: £3,937,000)) which during the period carried interest at SONIA
plus 2.5%. The interest margin fluctuates between 2.25% and 3.25% depending
on leverage. The lenders are ABN AMRO Bank N.V., Citibank N.A., Clydesdale
Bank plc, HSBC Bank plc and The Royal Bank of Scotland plc. The Facility
Agreement is subject to a leverage covenant of 3.0x and an interest cover
covenant of 4:1. The total commitments are £170,000,000 for the RCF with an
additional £40,000,000 accordion facility available subject to credit
approval. As at 30 June 2025 the RCF had an undrawn balance of £29,271,000
(H1 2024: £23,063,000) and the £40,000,000 accordion facility was undrawn
(H1 2024: £50,000,000). A non-utilisation fee representing 35% of the
applicable margin (being 0.875% during the period) is charged on the
non-utilised element of the RCF facility. The revolving credit facility is
fully repayable by April 2028.
Certain companies within the Group are party to cross guarantees with respect
to bank loans totalling £140,729,000 (H1 2024: £76,937,000) advanced to
Ashtead Technology Limited and Ashtead Technology Offshore Inc. The lenders
have a floating charge over the assets of certain entities within the Group.
At 30 June 2025 the finance lease liability of £nil (H1 2024: £20,000)
relates to the financing of certain IT equipment and carried interest at a
fixed rate of 6.67%. The lender is Wesleyan Bank and was repaid in full in
May 2025.
Bank loans are repayable as follows:
Unaudited Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
£000 £000 £000
Within one year − − −
Within one to two years − − −
Within two to three years 140,729 − −
Within three to four years − 76,937 139,391
Within four to five years − − −
140,729 76,937 139,391
Deferred finance costs (1,339) (1,028) (1,722)
139,390 75,909 137,669
Finance lease liability is repayable as follows:
Unaudited Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
£000 £000 £000
Within one year − 20 9
13. Financing liabilities reconciliation
14. Audited Cash flows Interest paid / (received) Other Changes in exchange rates Unaudited
1 January 2024 non-cash changes 30 June 2024
£000 £000 £000 £000 £000 £000
Cash at bank and in hand 10,824 (5,033) (29) 29 465 6,256
(69,665) (6,111) 2,782 (2,953) 38 (75,909)
Bank loans
(2,810) 772 60 (322) 17 (2,283)
Lease liabilities
(31) 11 1 (1) - (20)
Finance lease liability
Net debt (61,682) (10,361) 2,814 (3,247) 520 (71,956)
The non-cash movement relates to the amortisation of deferred finance costs,
accrual of finance costs on lease liability and the addition of new leases
during the period.
Unaudited Cash flows Acquisitions Interest paid / (received) Other Changes in exchange rates Audited
30 June 2024 non-cash changes 31 December 2024
£000 £000 £000 £000 £000 £000 £000
Cash at bank and in hand 6,256 5,015 2,156 (92) 92 (1,259) 12,168
(75,909) (61,538) − 3,526 (3,800) 52 (137,669)
Bank loans
Lease liabilities (2,283) 656 (390) 71 (647) (252) (2,845)
(20) 11 − (1) 1 - (9)
Finance lease liability
Net debt (71,956) (55,856) 1,766 3,504 (4,354) (1,459) (128,355)
The non-cash movement relates to the amortisation of deferred finance costs,
accrual of finance costs on lease liability and the addition of new leases
during the period.
Audited Cash flows Interest paid / (received) Other Changes in exchange rates Unaudited
31 December 2024 non-cash changes 30 June 2025
£000 £000 £000 £000 £000 £000
Cash at bank and in hand 12,168 1,861 (162) 162 (2,070) 11,959
(137,669) (1,411) 4,907 (5,290) 73 (139,390)
Bank loans
(2,845) 1,054 124 (2,581) (244) (4,492)
Lease liabilities
(9) 9 - - - -
Finance lease liability
Net debt (128,355) 1,513 4,869 (7,709) (2,241) (131,923)
The non-cash movement relates to the amortisation of deferred finance costs,
accrual of finance costs on lease liability and the addition of new leases
during the period.
14. Leases
Leases as lessee
The Group leases warehouses, offices, and other facilities in different
locations (UK, UAE, Singapore, Canada, USA, Norway). The lease terms range
from 2 to 15 years with an option to renew available for some of the leases.
The Group has elected not to recognise right-of-use assets and lease
liabilities for leases that are short-term and/or of low-value items. The
Group recognises the lease payments associated with these leases as an expense
on a straight-line basis over the lease term.
Further information about leases is presented below:
a) Amounts recognised in consolidated balance sheet
Right-of-use assets £000
Balance at 1 January 2024 audited 2,584
Additions to right-of-use assets 202
Depreciation charge for the period (644)
Effects of movements in exchange rates (14)
------
Balance at 30 June 2024 unaudited 2,128
------
Additions to right-of-use assets 767
Acquisition of right-of-use assets 390
Depreciation charge for the period (631)
Effects of movements in exchange rates (27)
------
Balance at 31 December 2024 audited 2,627
------
Additions to right-of-use assets 2,824
Depreciation charge for the period (984)
Effects of movements in exchange rates (255)
------
Balance at 30 June 2025 unaudited 4,212
------
Unaudited Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
Lease liabilities: £000 £000 £000
Current 1,450 970 1,129
Non-current 3,042 1,313 1,716
Total lease liabilities 4,492 2,283 2,845
b) Amounts recognised in the income statement
Unaudited Unaudited Audited
six months to 30 June 2025 six months to 30 June 2024 year ended
31 December 2024
£000 £000 £000
Depreciation charge 984 644 1,275
Interest expense on lease liability 124 60 131
Expenses relating to short-term leases 217 154 475
Total amount recognised in the income statement 1,325 858 1,881
c) Amounts recognised in the cash flow statement
Unaudited Unaudited Audited
six months to 30 June 2025 six months to 30 June 2024 year ended
31 December 2024
£000 £000 £000
Total cash payments for leases 1,178 832 1,558
15. Capital commitments
Unaudited Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
£000 £000 £000
Capital expenditure contracted for but not provided 9,646 11,806 3,947
16. Share based payments
The IPO LTIP awards were granted on 5 September 2022 and comprise three equal
tranches, with the first tranche vested on the announcement of the annual
results for the year ended 31 December 2022, the second tranche vested on the
announcement of the annual results for the year ended 31 December 2023 and the
third tranche vested on the announcement of the annual results for the year
ended 31 December 2024. Certain senior managers from various Group companies
are eligible for nil cost share option awards with Ashtead Technology Holdings
plc granting the awards. On exercise, the awards will be equity settled with
Ordinary Shares in Ashtead Technology Holdings plc. The IPO LTIP share
awards vesting is subject to the achievement of a target annual Adjusted EPS
and participants remaining employed by the Group over the vesting period.
The outstanding number of IPO LTIP awards at 30 June 2025 is 242,458 (30 June
2024: 378,279).
Share based payments Tranche 1 Tranche 2 Tranche 3
Valuation model Black-Scholes Black-Scholes Black-Scholes
Weighted average share price (pence) 260.5 260.5 260.5
Exercise price (pence) 0 0 0
Expected dividend yield 0.76% 0.81% 0.85%
Expected volatility 41.93% 41.93% 41.93%
Risk-free interest rate 2.79% 3.14% 3.04%
Expected term (years) 0.67 1.67 2.67
Weighted average fair value (pence) 259.2 257.0 254.7
Attrition 5% 5% 5%
Weighted average remaining contractual life (years) 7.17 7.17 7.17
The expected volatility has been calculated using the Group's historical
market data history since IPO in 2021.
Share based payments Number of shares Weighted average exercise price (£)
Outstanding at beginning of the period 310,358 −
Granted − −
Exercised (67,900) £5.412
Forfeited − −
Outstanding at the end of the period 242,458 −
Exercisable at the end of the period 242,458 −
Share-based payments expense recognised in the consolidated income statement
during the period was £234,000 (H1 2024: £488,000), inclusive of employer's
national insurance contributions of £121,000 (H1 2024: £123,000).
2023 LTIP awards
The first 2023 LTIP scheme awards were granted on 4 May 2023, with vesting on
the announcement of the annual results for the year ended 31 December 2025.
Certain senior managers from various Group companies are eligible for nil cost
share option awards with Ashtead Technology Holdings plc granting the awards
and on exercise, the awards will be equity settled with Ordinary Shares in
Ashtead Technology Holdings plc. The share awards vesting is subject to the
achievement of agreed Adjusted EPS, ROIC and Total Shareholder Return (TSR)
targets and participants remaining employed by the Group over the vesting
period. On 16 April 2024 new awards were granted under the 2023 LTIP scheme
and will vest on the announcement of the annual results for the year ended 31
December 2026.
The outstanding number of awards at 30 June 2025 is 624,031 (30 June 2024:
664,605).
Share based payments EPS ROIC TSR
Valuation model Black-Scholes Black-Scholes Monte Carlo
Weighted average share price (pence) 379.0 / 687.0 379.0 / 687.0 379.0 / 687.0
Exercise price (pence) 0 0 0
Expected dividend yield 0.0% 0.0% 0.0%
Expected volatility 40.17% / 39.01% 40.17% / 39.01% 40.17% / 39.01%
Risk-free interest rate 3.71% / 4.31% 3.71% / 4.31% 3.71% / 4.31%
Expected term (years) 3.02 / 3.06 3.02 / 3.06 3.02 / 3.06
Weighted average fair value (pence) 379.0 / 687.0 379.0 / 687.0 298.0 / 544.0
Attrition 5% 5% 5%
Weighted average remaining contractual life (years) 7.84 / 8.79 7.84 / 8.79 7.84 / 8.79
The expected volatility has been calculated using the Group's historical
market data history since IPO in 2021.
Share based payments Number of shares Weighted average exercise price (£)
Outstanding at beginning of the period 624,031 −
Granted − −
Exercised − −
Forfeited − −
Outstanding at the end of the period 624,031 −
Exercisable at the end of the period − −
Share-based payments expense recognised in the consolidated income statement
during the period was £895,000 (H1 2024: £473,000), inclusive of employer's
national insurance contributions of £349,000 (H1 2024: £115,000).
17. Share capital and reserves
The Group considers its capital to comprise its called up share capital, share
premium, merger reserve, share based payment reserve, retained earnings and
foreign exchange translation reserve. Quantitative detail is shown in the
consolidated statement of changes in equity. The Directors' objective when
managing capital is to safeguard the Group's ability to continue as a going
concern in order to provide returns for the shareholders and benefits for
other stakeholders.
Called up share capital Unaudited Unaudited Audited
30 June 2025 30 June 2024 31 December 2024
Allotted, called up and fully paid No. £000 No. £000 No. £000
Ordinary shares of £0.05 each 80,624,196 4,031 80,313,838 4,016 80,313,838 4,016
4,031 4,016 4,016
Ordinary share capital represents the number of shares in issue at their
nominal value. The holders of Ordinary Shares are entitled to receive
dividends as declared from time to time and are entitled to one vote per share
at meetings of the Company.
On 25 March 2025, the Company issued 310,358 newly authorised shares at a
subscription price of £0.05 (being the nominal value) to the Employee Benefit
Trust in anticipation of the vesting of the second tranche of IPO LTIP share
options. The shares are held by the Employee Benefit Trust on the behalf of
certain option holders and are non-voting until each of the option holders
choose to exercise their options at which point they are transferred to the
option holder and become voting shares. As of 30 June 2025, 242,458 shares
(H1 2024: 12,346) were held by the Company's Employee Benefit Trust.
Share premium
Share premium represents the amount over the par value which was received by
the Group upon the sale of the Ordinary Shares.
Merger reserve
The merger reserve was created as a result of the share for share exchange
under which Ashtead Technology Holdings plc became the parent undertaking
prior to the IPO. Under merger accounting principles, the assets and
liabilities of the subsidiaries were consolidated at book value in the Group
financial statements and the consolidated reserves of the Group were adjusted
to reflect the statutory share capital, share premium and other reserves of
the Company as if it had always existed, with the difference presented as the
merger reserve.
Share based payment reserve
The share based payment reserve is built up of charges in relation to equity
settled share based payment arrangements which have been recognised within the
consolidated income statement.
Foreign currency translation reserve
The assets and liabilities of foreign operations, including goodwill and fair
value adjustments arising on consolidation, are translated to the Group's
presentational currency, sterling, at foreign exchange rates ruling at the
balance sheet date. The revenues and expenses of foreign operations are
translated at an average rate for each month where this rate approximates to
the foreign exchange rates ruling at the dates of the transactions.
Exchange differences arising from this translation of foreign operations are
reported as an item of other comprehensive income and accumulated in the
translation reserve, within invested capital. When a foreign operation is
disposed of, such that control, joint control or significant influence (as the
case may be) is lost, the entire accumulated amount in the foreign currency
translation reserve is recycled to the income statement as part of the gain or
loss on disposal.
Retained earnings
The movement in retained earnings is as set out in the consolidated statement
of changes in equity. Retained earnings represent cumulative profits or
losses, net of dividends and other adjustments.
18. Related parties
There were no transactions with related parties, other than key management
personnel, in the six-month period ended 30 June 2025.
Compensation of key management personnel: Unaudited Unaudited Audited
six months six months year ended
to 30 June 2025 to 30 June 2024 31 December 2024
£000 £000 £000
Short-term employee benefits 1,038 1,066 1,574
Social security costs 141 603 667
Contributions to money purchase pension schemes 33 31 62
Share based payment expense (Note 16) 698 533 820
Total 1,910 2,233 3,123
19. Reconciliation of Alternative Performance Measures
Reconciliation of Adjusted EBITDA Unaudited Unaudited Audited
six months to 30 June 2025 six months to 30 June 2024 year ended
31 December 2024
Notes £000 £000 £000
Adjusted EBITDA 38,397 31,418 69,451
Cost associated with M&A - - (2,610)
Restructuring costs (240) (103) (316)
Software development costs (343) - (405)
Other exceptional costs - - (90)
-------- -------- --------
Operating profit before depreciation, amortisation and foreign exchange
gain/(loss)
37,814 31,315 66,030
Depreciation on property, plant and equipment 6 (10,393) (8,195) (17,850)
Depreciation on right-of-use asset 14 (984) (644) (1,275)
-------- -------- --------
Operating profit before amortisation and foreign exchange gain/(loss)
26,437 22,476 46,905
Amortisation of intangible assets 7 (2,994) (1,823) (3,841)
Foreign exchange loss (286) (30) (271)
-------- -------- --------
Operating profit 23,157 20,623 42,793
Reconciliation of Adjusted EBITA Unaudited Unaudited Audited
six months to 30 June 2025 six months to 30 June 2024 year ended
31 December 2024
Notes £000 £000 £000
Adjusted EBITA 27,020 22,579 50,326
Cost associated with M&A - - (2,610)
Restructuring costs (240) (103) (316)
Software development costs (343) - (405)
Other exceptional costs - - (90)
Amortisation of intangible assets 7 (2,994) (1,823) (3,841)
Foreign exchange loss (286) (30) (271)
-------- -------- --------
Operating profit 23,157 20,623 42,793
19. Reconciliation of Alternative Performance Measures (continued)
Reconciliation of Adjusted Profit Before Tax Unaudited Unaudited Audited
six months to 30 June 2025 six months to 30 June 2024 year ended 31 December 2024
Notes £000 £000 £000
Adjusted Profit Before Tax 21,644 19,588 43,596
Cost associated with M&A - - (2,610)
Restructuring costs (240) (103) (316)
Software development costs (343) - (405)
Other exceptional costs - - (90)
Foreign exchange loss (286) (30) (271)
Amortisation of intangible assets 7 (2,994) (1,823) (3,841)
-------- ------- --------
Profit before taxation 17,781 17,632 36,063
Reconciliation of Adjusted Profit After Tax Unaudited Unaudited Audited
six months to 30 June 2025 six months to 30 June 2024 year ended
31 December
2024
Notes £000 £000 £000
Adjusted Profit After Tax 17,587 15,292 36,109
Cost associated with M&A - - (2,610)
Restructuring costs (240) (103) (316)
Software development costs (343) - (405)
Other exceptional costs - - (90)
Foreign exchange loss (286) (30) (271)
Amortisation of intangible assets 7 (2,994) (1,823) (3,841)
Tax impact of the adjustments above 145 25 202
-------- -------- --------
Profit for the financial period 13,869 28,778
13,361
Adjusted Profit After Tax is used to calculate the Adjusted earnings per share
in Note 5.
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