Ashtead Technology Share Discussion Threads

[bigbigdave] 29/11/2024 06:52

Stick my neck out and say he wouldn't have spent £71,500 if there was a profit warning coming.

[eagle eye] 28/11/2024 17:33

Yes indeed. He bought 13K at 550p taking his holding to 65K.

[bigbigdave] 28/11/2024 16:30

Director buy £71,500

[bigbigdave] 28/11/2024 14:00

Interview here Paul Hill with Abby Glennie from ABRDN, AT. covered at 25.40

[zho] 25/11/2024 10:37

Puzzled – and rather wrong-footed – by post-interims weakness.

Calendar 2025 estimates have been increased by c. 5% (from 43.2p to 45.5p) following news of the acquisition of Seatronics.

But AT.'s guidance was that the acquisition of Seatronics would be “mid-to-high single digit earnings enhancing in the first full year of ownership” and so a 5% increase in estimates for 2025 (at the bottom of this range) could be seen as caution, or perhaps a modest, disguised warning?

[rmorris94] 20/11/2024 08:34

Entered here after having interest sparked by playing ftse. Seems like a good energy security play. Also, interested if there's any scope to benefit from subsea cables being cut...

[chester9] 16/11/2024 06:59

Ian summarised well. Good team tough time for sector. They could do with a TU in Dec/jan.

[zho] 15/11/2024 12:56

Paul Hill and FM Iain Staples discuss AT. from 25.55

[radderssandy] 14/11/2024 11:29

I am a new investor in AT. and will bow to others superior knowledge but I thought the company sounded pretty upbeat, in the September results, regarding the offshore side of the business.

Take, for example, the answer to the first question in the Q&A.

“As I said, the UK is a market leader in offshore wind. We are encouraged by the government's approach to the offshore wind market. They've increased the target on 2030 from 50 gigawatts to 55 gigawatts. What we would say there, is that the Rystad data that we're showing in these slides is based on 43 gigawatts. So you know, one of the challenges there is, how does the industry react to be able to put that level of infrastructure in play by the end of the decade, but we clearly see that as a growth opportunity for this business and very, very welcome to it”.

Slide No.13 is maybe worth a look at.

Agree the share price is frustrating, I’m already sitting on a sizeable loss (nearly 17%) and I’ve only been invested since the 24th October. My broker bought them, and for what it’s worth, he is bullish about their prospects.

[zho] 14/11/2024 10:14

>>Low oil prices = less offshore development due to CAPEX requirements being higher.>>

According to a 3/11/22 Simon Thompson article "In the mature oil and gas sector, the focus is on IMR and decommissioning".

If correct, wouldn't this mean that AT. would/could benefit from a weak O&G investment environment?

[74tom] 12/11/2024 13:02

The market is pricing in the impact of what looks likely to be a sustained period of low global oil prices (Trump's 'drill baby drill' being the final nail in coffin).

Low oil prices = less offshore development due to CAPEX requirements being higher.

That means less work for AT.

Yes, they are somewhat diversified via renewables & decommissioning, but considering the market has been buoyant over the last few years, I think they will struggle to meet / beat expectations.

They also have major debt obligations now & the higher for longer rate environment won't help their EPS ambitions.

All IMO.

[mutley655] 12/11/2024 10:23

What is going on with the share price on a continuous decline. The only thing I can think of is the Labour government opening up On-Shore wind development.

[bulltradept] 04/11/2024 14:12

Gap @ £5.09 on the chart for those that follow TA.

[chester9] 31/10/2024 15:59

One persons problem is another's opportunity. Let's see where this drops to with ACE settling in and Seatronics coming on board we are looking at a significant revenue increase, 50% FY24 and 40% FY25. If they make them fit and it works the share price will look very cheap. Stocko has them qualifying for Jim Slater principle always a good sign. Peg 0.7 ROCE 18 ROE 25.

[slogsweep] 31/10/2024 15:40

Probably Octopus now IHT exemption compromised people pulling out of their fund . Hope it doesnt trash the whole Aim market. Some growth Budget seems determined to wreck all small businesses which are the main growth drivers in the economy.

[se81] 31/10/2024 09:26

And just like that the "budget gains" are gone.

Probably now safe to assume there's an insti seller that needs to clear?

[barneybiggusdickus] 30/10/2024 13:29

Budget done then, everyone buying back now!

[bigbigdave] 29/10/2024 06:44

Hopefully get the Budget out of the way and AT. should go north, no matter what tax measures are in it it's the uncertainty which is holding everything back.

[johnrxx99] 29/10/2024 03:22

At 51, I would be.

[tudes100] 29/10/2024 01:26

What a ridiculous comment, he's 51 and he's got 7m quid's worth. You think you'd be adding shares in the circumstances ?

[johnrxx99] 28/10/2024 08:56

Shame the CEO only sells shares. Doesn't inspire confidence.

[radderssandy] 28/10/2024 07:05

“Ashtead Technology is delivering, says Peel Hunt

The latest acquisition by Ashtead Technology (AT) is further evidence of its ability to deliver its strategy, says Peel Hunt.

Analyst Andrew Nussey reiterated his ‘buy’ recommendation and target price of 850p on the subsea equipment rental group, which climbed 8.6% to 589.5p yesterday after announcing the conditional acquisition of Seascan for £63m, which enhances its capability and provides a platform for international growth.

‘The acquisition looks to be the right transaction at the right time, although some investment is required to bring the business up to Ashtead Technology’s high standards,’ said Nussey.

He added that the ‘highly complementary’ purchase is ‘yet another proof point of Ashtead Technology’s ability to deliver strategically, operationally, and financially accretive M&A’, as well as providing ‘strong organic growth’.”

[bigbigdave] 25/10/2024 06:11

BERENBERG RAISES ASHTEAD TECHNOLOGY PRICE TARGET TO 800 (775) PENCE - 'BUY'

[74tom] 24/10/2024 08:41

Nice trade this morning, however this strikes me as a very risky deal.

You can review the Seatronics & J2 financial information on companies house;



In their last filed accounts, Seatronics stated that 'a landscape of a general increase in the oil price helped the company return to growth'

The first listed principal risk is that of a slowdown in the offshore O&G industries due to either falling oil prices or the broader energy transition

There is little doubt that the threat of Saudi increasing production in December is weighing on global prices and if oil does fall below $70 there will be a lot less exploration & development work for AT. to go after. Based on this risk, I'm amazed they have parted with £70m for companies producing EBITA of £9m last year.

That £70m increase in the RCF also has to be accounted for. In the HY accounts they disclosed that it cost SONIA + 2.25%, so 7.2% at present. So this deal will potentially cost over £5m per annum. And they are also going to spend a further £10m on fleet investment!

My guess is the retail investor push will soon die off, hedge funds will update their numbers and this will get pushed back down. If Saudi do proceed with their planned output increase in December then AT. could be in for a challenging 2025/26 IMO.