Subsea equipment rental company Ashtead Technology Ltd is planning to join AIM in the second half of November. This is an international business with a spread of activities around the world.
Aberdeen-based Ashtead Technology was formed in 1985 and its initial focus was offshore oil and gas. The market has broadened into offshore windfarms. Services are provided for project development, construction and installation. There are also inspection and maintenance services for the oil and gas sectors. Most of the equipment can be used for oil and gas or windfarms.
The offshore wind market is expected to grow by 19% a year between 2020 and 2025. There is no indication about where in the world the market is going to grow fastest. More clients are opting to rent equipment rather than spend money on buying it. There are nine service centres in the Americas, Europe, West Africa, Middle East and Asia Pacific.
The ultimate holding company of Ashtead Technology Ltd is Bedfordshire-based BP INV2 Holdco Ltd, which in turn is owned by a Jersey-registered company. In 2020, Ashtead Technology Ltd revenues fell from £21.4m to £18.5m, while pre-tax profit declined from £5.34m to £979,000.
In the same period, BP INV2 Holdco Ltd revenues slipped from £47.8m to £42.4m, while a pre-tax profit of £2.77m turned into a loss of £4.89m. The intention to float announcement estimates that 2021 revenues will be at least £52m, so it appears that it is BP INV2 Holdco Ltd – possibly via a name change – is floating or there will be a reorganisation of ownership.
There is no geographic breakdown in the Ashtead Technology Ltd or BP INV2 Holdco accounts published at Companies House. There have been five acquisitions since 2017 and more are planned in what management calls a fragmented market. Management believes that organic growth can be in low double digits. The fastest growth should be in offshore wind with steady growth in oil and gas demand.
Numis is nominated adviser. There will be more information in the prospectus when that is published.