Ashtead Technology Holdings Plc · LSE:AT.
Ashtead Technology — H1 2024 Earnings Presentation
22 slides from Ashtead Technology's earnings presentation, September 2024
Slide 1: HY 2024 Results Presentation
HY 2024 Results Presentation September 2024
Slide 2: Disclaimer
Disclaimer This presentation has been prepared and issued by, and is the sole responsibility of, Ashtead Technology Holdings plc (the “Company”), being the current holding company of the Ashtead Technology Holdings plc group (the “Group”). For the purpose of this disclaimer notice, “presentation” sh
Slide 3: Continuing to deliver strong growth
Continuing to deliver strong growth Positive outlook and HY24 performance provides increased confidence in our unchanged FY24 expectations HY24 revenues +61.4% on prior year Continued revenue Continued strong market conditions across both offshore renewables and offshore oil and gas growth acros
Slide 4: What makes Ashtead Technology unique?
What makes Ashtead Technology unique? A key strength is our “one team” integrated project approach, delivering vessel time savings & customer project efficiencies Survey & robotics Largest independent Trusted partner Building capability Plugging technology gaps fleet Mechanical Asset solutions integ
Slide 5: Financial overview
8 Ashtead ) Technology
Slide 6: HY 2024 highlights: A strong start to the year
HY 2024 highlights: A strong start to the year Continued momentum across the business Revenue Adjusted EBITA Cost Utilisation Net debt / Adjusted 61% 46% EBITDA £80.5.m £22.6m 44% 1.2x HY23: £49.8m HY23: £15.5m HY23: 45% HY23: 0.7x Adjusted EBITA Adjusted Basic ROIC Total Recordable Margin EPS Incid
Slide 7: Continuing track record of growth and strong financial performance
Continuing track record of growth and strong financial performance Investing in organic and inorganic growth with results and margins in line with expectations Revenue (£m) 1 Adjusted EBITDA1,2,4 (£m) Adjusted EBITA1,3,4 (£m) 44% 42% 43% 39% 25% 27% 33% 31% 28% 40% 39% 41% 40% 30% 29% 149.6 45.4 60.
Slide 8: Profit & loss
Profit & loss Strong growth across the business £m HY232 HY24 Overview Revenue 49.8 80.5 Revenue grew by 61.4% from HY23 to HY24 YoY increase 57.1% 61.4% 46.6% growth from M&A – ACE Winches deal closed H2 2023 16.3% organic growth from continued investment in fleet and people Cost of sales (10
Slide 9: Cashflow
Cashflow Robust operating cash flow conversion £m HY23 HY24 Operating cash flow conversion of 61% due to working capital outflow – linked to Adj. EBITDA 21.1 31.4 growth and seasonality Exceptional costs & FX 0.2 (0.1) Expected to unwind in part through H2 Gain on Sale of fixed assets (0.5) (0.8
Slide 10: Balance Sheet
Balance Sheet Balance sheet remains strong at 1.2x leverage £m HY23 FY23 HY24 GBV of rental fleet 130.3 160.7 172.4 Accumulated depreciation of rental fleet NBV of rental fleet continues to increase through investment (97.6) (97.7) (102.7) Working capital build up due to growth and seasonality N
Slide 11: Operational overview
Operational overview
Slide 12: Market backdrop supportive of continued growth
Market backdrop supportive of continued growth Ashtead Technology’s addressable market continues to see healthy growth through to 2027 and beyond The total addressable market1 is expected to reach close to $3.5bn by 2027 Growth comes from all of Ashtead Technology’s key geographic markets Europe r
Slide 13: Offshore wind markets continue to strengthen
Offshore wind markets continue to strengthen Sector shows significant promise with FID activity in Europe reaching record breaking capacity in 2023 and significant auction activity expected in 2024 Material step up in potential future activity Record level of project approvals Global auction activit
Slide 14: Customer backlogs continue to strengthen
Customer backlogs continue to strengthen Execution periods extending with 38% of backlogs for execution beyond 2026 Backlog developments for selected key service contractors Historical backlog comparison by year of execution Christine Cochrane, HR Director Customers have continued to announce reco
Slide 15: M&A – the opportunity continues
M&A – the opportunity continues M&A strategy as set out at IPO remains in place with continued focus on expanding operational breadth, depth and reach A clear and focused set of M&A criteria… Consolidation of a highly fragmented market Survey & Geographic expansion Robotics Product and solutio
Slide 16: Acquisition track record
Acquisition track record Ashtead Technology has a history of strategically aligned and financially accretive acquisitions Ashtead Technology completed 5 acquisitions from 2017 through to 2019 3 acquisitions completed since IPO All 8 acquisitions have been excellent additions to the Ashtead Tec
Slide 17: Outlook – positive momentum continues
Outlook – positive momentum continues Increased confidence in FY24 outturn Leading position & positive market backdrop supports continued growth Encouraging start to FY24 Market indicators remain strong, strengthening customer demand across both offshore renewables and oil and gas end markets in
Slide 18: Appendices
Sy ad Appendices ~~
Slide 19: Sustainability
Sustainability A clear commitment to the energy transition and focus on sustainability ensures Ashtead Technology is well positioned to benefit all stakeholders HY24 achievements Focus on offshore renewables 42% growth in renewables revenues Continued focus on investing in equipment fungible acr
Slide 20: Reconciliation – HY24 adjusted to reported figures
Reconciliation – HY24 adjusted to reported figures Restructuring Adjusted profit & loss (£m) Adjusted Other Reported Adjusted EBITDA / EBITA / Profit before tax (£m) Costs Revenue 80.5 - - 80.5 Reported operating profit 20.6 Gross profit 61.0 - - 61.0 Depreciation 8.8 Administration expenses (41.1)
Slide 21: Overheads
Overheads Overhead increases with staff and other overhead costs reducing as a % of revenue £m HY23 HY24 Commentary Revenue 49.8 80.5 YoY performance 57.1% 61.4% Salaries increased due to: Increase in employees from 289 to 559, growth predominantly coming from further expansion of our technical
Slide 22: s& Ashtead.
s& Ashtead. Technology
Ashtead Technology Holdings — H1 2024 Earnings Presentation on 6ix