ADVFN Logo ADVFN

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for monitor Customisable watchlists with full streaming quotes from leading exchanges, such as LSE, NASDAQ, NYSE, AMEX, Bovespa, BIT and more.

AT Ashtead Technology Holdings plc

0.00
0.00 (0.00%)
Share Name Share Symbol Market Type Share ISIN Share Description
Ashtead Technology Holdings plc LSE:AT London Ordinary Share Ordinary Shares
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.00% 0.00 -
Bid Price Offer Price High Price Low Price Open Price
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
  -
Last Trade Time Trade Type Trade Size Trade Price Currency
- 0 GBP

Ashtead Technology (AT) Latest News

Ashtead Technology (AT) Discussions and Chat

Ashtead Technology Forums and Chat

Date Time Title Posts
27/5/200314:48Altracel, for the brave but what a prospect!-
06/2/200213:05AT Trades2

Add a New Thread

Ashtead Technology (AT) Most Recent Trades

No Trades
Trade Time Trade Price Trade Size Trade Value Trade Type

Ashtead Technology (AT) Top Chat Posts

Top Posts
Posted at 14/11/2024 11:29 by radderssandy
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.
Posted at 24/10/2024 08:41 by 74tom
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.
Posted at 28/8/2024 05:51 by bigbigdave
Ashtead Technology, a leading provider of subsea technology and services, has further expanded its service offering through a new rental agreement with Voyis Imaging Inc, a Canadian-based company providing versatile optical solutions to expand underwater capability and enhance understanding of remote, challenging environments.

The global rental partnership includes Voyis’’ Discovery Stereo ROV cameras, integrated with Nova Mini LEDs, which can operate at a depth of up to 4,000 metres. Recognised as the best-in-class photogrammetry solution for subsea 3D modelling, the Discovery Stereo is a complete vision system delivering low-latency 4K piloting video, crisp stills images, and accurate colourised 3D reconstructions for detailed asset inspection. The proven technology facilitates cost effective and high confidence inspections of critical infrastructure in offshore energy installations.
The Discovery Stereo rentals will be handled through Ashtead Technology’s global network of twelve hubs, supported by experienced personnel with comprehensive training, able to support system operation and data collection as well as data processing, analysis and reporting. In signing this strategic agreement Ashtead Technology becomes the primary company offering the Discovery Stereo on a rental basis, and Voyis becomes Ashtead Technology’s only supplier of high-accuracy optical 3D modelling vision systems.

The Discovery Stereo will enable offshore oil and gas and wind energy customers to capture low latency 4K video for smart ROV piloting while simultaneously recording high-resolution stills images that can be processed into 3D models for general inspection use. The subsea cameras also have an ultra-wide, 75°x75° field of view for complete situational awareness.

Ross MacLeod, Head of Asset Integrity at Ashtead Technology, said: “Our latest investment in Voyis’ vision systems for our rental and services portfolio is a great addition for our customers around the world, providing them with access to state-of-the-art equipment and expertise. The Discovery Stereo solution reinforces our commitment to provide the latest and best technology, and to continue to grow the range and depth of our offering.”

Commenting on the partnership, Chris Gilson, CEO of Voyis, stated “The only limitation of the game-changing 3D modelling sensors we have developed is our global reach. With their experience and technical capabilities, Ashtead Technology is the perfect partner to expand our existing rental capacity as we continue to push the limits of what is possible with this technology.”

This latest investment in the company’s rental and services portfolio is part of Ashtead Technology’s commitment to delivering high-quality subsea technology and services, supporting customers across the offshore energy sector. The business has expanded rapidly completing eight acquisitions in the past seven years. With a headcount of over 600 people and 23,000 items in its technology portfolio, it serves its customers from twelve strategic hubs across the globe.
Posted at 19/6/2024 03:48 by johnrxx99
I asked ChatGBT "Do you think Ashtead Technology will be affect by a new labour government in the UK" and it wrote:-

The impact of a new Labour government in the UK on Ashtead Technology, a provider of subsea equipment and solutions, would depend on several factors related to the Labour Party's policies and their implications for the sectors in which Ashtead Technology operates. Here are some key considerations:
1. Regulatory Environment

Labour Government's Stance on Oil and Gas: If a new Labour government implements stricter regulations on the oil and gas industry, which is a significant sector for Ashtead Technology, this could affect demand for their services and equipment. Labour policies might include reducing fossil fuel reliance, increasing environmental regulations, and promoting renewable energy sources.
Renewable Energy Transition: On the other hand, Labour's push towards renewable energy could create new opportunities for Ashtead Technology if the company diversifies its services to support the renewable energy sector, such as offshore wind.

2. Economic Policies

Investment in Infrastructure: Labour's focus on infrastructure investment, particularly in green and sustainable projects, could benefit Ashtead Technology if they align their services with these initiatives. Investment in subsea infrastructure for renewable energy projects could drive demand for their technology and expertise.
Corporate Tax Policies: Changes in corporate taxation could impact Ashtead Technology's profitability. If Labour increases corporate taxes, this could reduce net profits, although it might be offset by incentives for green technologies and businesses supporting sustainable initiatives.

3. Environmental and Energy Policies

Climate Change Commitments: Labour's commitment to tackling climate change could result in increased funding and support for clean energy projects. Ashtead Technology could benefit if it positions itself as a key player in the subsea technology market for these projects.
Subsea Technology in Renewables: If Labour promotes the expansion of offshore wind and other marine renewable energy sources, Ashtead Technology could see increased demand for its subsea solutions, assuming they can adapt their offerings to meet the needs of these sectors.

4. Industry-Specific Impacts

Oil and Gas Industry: A Labour government may impose stricter controls and reduced subsidies for the oil and gas sector. This could decrease demand for Ashtead Technology's services related to fossil fuel extraction and maintenance.
Renewables Sector: Conversely, there may be increased opportunities in offshore wind, tidal, and other marine renewable projects, which could create new revenue streams for Ashtead Technology if they leverage their expertise in subsea technology.

5. Research and Development Incentives

Innovation and R&D: Labour may introduce policies to support innovation and research and development, particularly in green technologies. Ashtead Technology could benefit from grants, tax incentives, or partnerships aimed at developing new subsea technologies for sustainable energy.

Summary

The overall impact on Ashtead Technology would largely depend on the specific policies implemented by a Labour government. While there may be challenges related to stricter regulations on the oil and gas industry, there could also be significant opportunities in the renewable energy sector. Ashtead Technology's ability to adapt and align its services with emerging trends in the energy market will be crucial in determining how it is affected by a new Labour government.
Posted at 08/5/2024 16:09 by sogoesit
Thanks,
Yep, that's low-ball.
The share price growth trend rate from IPO (Dec 2021) to October 2023 was about 50%pa.

It then broke-out and then there was a further displacement upon the ACE Winch acquisition and it consolidated between 01/12/23 and 24/01/24.

The share price then entered a new trend from a low of 572 on 12/01/24 to today at 825. This trend rate is about 200% CAGR. FFS!

Lets also be conservative and by awarding it a PEG of 1 at the old share price growth rate of 50% thereabouts. The forward P/E of 22.5 is thus 0.5 or thereabouts.
Thus significantly undervalued!

The other comparator is W7L which, until 18/04/24, was also in a growth trend rate of 50%.
But on recent results its 18p EPS, up 123% y-o-y, means it now trades, at share price 460, on 25x P/E.
Also undervalued.
But I think AT is the winner here... for the time being. Unless W7L rerates.
Posted at 28/4/2024 16:30 by wilmdav
I have now had a closer look at how AT is likely to have arrived at an ROIC figure of 28.6% for 2023.

My post 399 above noted that three different formulae provided by Investopedia produce three different figures for the denominator of ROIC. This remains the case but the figures are all in the same rather wide ball park.

Having read the Morgan Stanley 44 page article I am going to settle for the following Investopedia definition of Investment Capital, while bearing in mind that the MS article demonstrates how ROIC can be significantly affected by various adjustments that might be necessary.

IC = Total assets - cash - non interest bearing current liabilities (including tax and account payables)

The denominator is the average of IC over the reported year. This would normally be calculated by adding figures for the reported year and its predecessor and dividing by 2. In AT's case this would be problematic because of the final one month increase of investment in Ace Winches. To calculate the 2023 IC the company appears to have taken the 2022 figure and added one twelfth of the difference between figures for the two years - or something along those lines.

However IC for 2024 will be affected by Ace Winches for the whole year. Hence an indication of ROIC for 2024 can be gleaned by simply using the 2023 IC as denominator. During the analyst presentation the company said it was looking for an ROIC going forward of high teens.

The numerator is NOPAT (net operating profit (EBIT) after tax). In AT's case they appear to have used adjusted EBITA minus tax, which would be in accordance with Morgan Stanley's advice. AT has conveniently provided a figure for adjusted EVITA of 36.2m. My calculations suggest they have also followed MS advice in adding the interest component of operating lease expense, which brings the NOPAT figure up to 37.4m or 29.9m after deduction of a notional 20% tax.

The outcome of all this is an ROIC of 26.9% and around 18% going forward, which is close enough for the purpose of showing the kind of calculations the company is likely to have made.

I should add that MS makes a point that companies need some cash in their working capital to operate. They suggest a figure between 2% and 5%, depending on the company's size and maturity. Adding this back would reduce the outcome of ROIC calculations somewhat.

The current p/e on 2023 earnings is 24.3 and 21.4 for 2024 earnings. The PEGs are 1.8 and 1.4 respectively.
Posted at 22/4/2024 10:16 by wilmdav
I thought it would be instructive to try to replicate AT's quoted ROIC ratio of 28.6% for 2023.

The numerator is normally straightforward (EBIT - tax).

Investopedia gives three alternative method's for calculating the denominator. These should all arrive at the same figure. My attempts to follow the instructions produce three different figures for 2023 between £168.6m and £159.3m and between £103.6m and £105.8m for 2022. Closer inspection and consideration will no doubt iron out the variations.

At present the only way I can get near an ROIC of 28.6% is to use AT'S 2023 adjusted EBIT (EVITA minus amortisation) minus tax for the numerator and my lowest figure for the 2022 denominator.

On this basis ROIC comes out at just above or below 28.6% depending on what tax figure is used (paid/charged).

I had expected the denominator utilised would be an average between that of 2022 and 2023, which would result in an ROIC in the region of 21.8%. It would be further reduced to around 18.8% if reported EBIT minus tax is used for the numerator.

Obviously the crucial thing in comparing one company's ROIC with another is to be consistent in one's own calculations.

Edited at 11:36am
Posted at 21/4/2024 14:02 by carcosa
Return on Invested Capital (ROIC) and Return on Capital Employed (ROCE) are key profitability metrics. While the numerators in their formulas are identical, the denominators differ - ROIC utilises invested capital, whereas ROCE is calculated using capital employed (adjusted for goodwill in my example).

These ratios indicate a highly profitable company, though they do not inherently suggest whether the company is under or overvalued. To assess valuation, one must apply relevant valuation metrics. Considerations include the price-to-earnings (P/E) ratio, the PEG ratio (as per Sogoesit psots) which accounts for growth, and the EV/EBITDA multiple frequently referenced for high-growth companies. The debt-adjusted P/E ratio also offers valuable insights.

Overall the company is not exhibiting good valuation metrics nor low gross gearing so I would not be surprised to see share price weakness over the coming months.

When evaluating an investment opportunity, I prioritise several key factors:

- The overall market growth trajectory - Affirmative for Ashtead Tech's sector.
- Pricing power? - Evident from high gross margins and recent 13% price increase.
- Ability to fund further acquisitions through organic cash flow or equity financing if required - Appears viable given their position.
- High revenue rate increases over next 1-3 years? - Easily Yes for next year.

So as long term investor I'm happy to hold but I would be unlikely to be a new buyer of the shares; even as (improved) analysts' forecasts start to trickle through.
Posted at 21/4/2024 10:44 by sogoesit
Wilmdav...
"It is not difficult to find shares in a strong growth trend but I currently feel underequipped to make an independent assessment of such a share's future growth prospects and the extent to which a share price or P/E is justified."

True (there are many companies that do exhibit strong growth trends, especially at present).
However, the ROIC measure, for me and others, exhibits the strength of management's (historic) performance using in part OUR capital and the leveraging of Debt (WACC).
This performance is based on financial and operating skills and judgement of (future) valuation when engaging in M&A and the impact of M&A synergies with its existing business.
If Returns are consistent over (historic) time then the probabilities are in favour of that management's performance being consistent in future. Of course the future is unpredictable and management may err or slip-up but investing is a game of probability and not of deterministic certainty. In general one's investing chances of good returns accrue from good management and this is exemplified by companies that have them (eg Steve Jobs/Jony Ive, Tim Cook, Nooyi, Bezos, Wolfson etc.).
ROIC measures how well management uses our capital in a domain of risk and return (cf WACC) where we as investors can quickly see the competitive use of our capital and choose to remain or go elsewhere (based on our own cost-of-capital).

Always seek and buy good management imv (and spot it with ROIC performance).
Here are some high ROIC performers: Inditex (20%+), HSY (20%+), LLY (20%+), MSFT (25%+), PEP (18%), LVMH (14%), Hermes (Paris) (24%), Frasers (12%+), Next (20%+), MPC, AMR etc.

P/E is another issue. It is one of valuation of present/past value against market participants' future growth expectations and can be both fickle and volatile. Investors, especially "Value" investors, can get easily confused when judging companies by P/E, especially when looking at historic (TTM) ratios and fall into the trap of not looking at forward valuations. The problem is exacerbated in the UK due to the infrequency of financial reporting (half-yearly, and late, versus US quarterly).

The PEG Ratio is therefore the best measure for this imv and the inventor, Jim Slater, wrote about it in The Zulu Principle. His son, Mark Slater, applies the principles in a Fund he manages, The Slater Growth Fund. This fund offers insights to growth company valuation and investing.
(NB. Growth company investing should not be confused with Momentum (Trend) investing albeit that when they combine returns do significantly outperform in my experience).
Posted at 30/11/2023 07:05 by bigbigdave
30 November 2023

Ashtead Technology Holdings plc

("Ashtead Technology" or the "Group")



Acquisition of ACE Winches



Ashtead Technology acquires ACE Winches



Ashtead Technology Holdings plc (AIM: AT.), a leading subsea equipment rental and solutions provider for the global offshore energy sector, is pleased to announce the acquisition of the entire share capital of Rathmay Limited, the parent company of ACE Winches, from its founders Alfie and Valerie Cheyne, for a total cash consideration of £53.5m (on a cash and debt free basis) (the "Transaction").



The Transaction will be funded through drawing on the Group's revolving credit facility and is expected to be materially earnings enhancing in FY2024 and beyond, with ROIC materially ahead of the Group's weighted average cost of capital in year one.



About ACE Winches

Established in 1992, UK headquartered ACE Winches is a market-leader in the design, assembly and rental of lifting, pulling and deployment solutions. The company's core offering supports the installation, inspection, maintenance & repair and decommissioning of offshore energy infrastructure which is highly complementary to Ashtead Technology's existing equipment and services portfolio.



Through a combination of its comprehensive rental fleet and 31 years of proven engineering experience and expertise, ACE Winches has built up an unrivalled reputation amongst its traditional oil and gas customers and has more recently seen success in expanding into the offshore renewables market. The company's in-house designed and assembled equipment rental fleet is one of the most comprehensive and diverse ranges of back deck machinery in the industry and is designed to deliver reliable, fully integrated solutions to address all complex lifting, pulling and deployment challenges.



With nearly 80 per cent. of ACE Winches' revenue generated outside of the UK, supported by operations in Norway and sales offices in the UAE and USA, the acquisition offers a significant opportunity for Ashtead Technology to further expand its global offering across its existing international footprint. ACE Winches is Ashtead Technology's eighth acquisition in the last six years and follows the Group's acquisitions of WeSubsea and Hiretech, in 2022.



ACE Winches will form part of the Group's enlarged Mechanical Solutions offering, a core area of focus for inorganic expansion. Gary Wilson, current Chief Commercial Officer at ACE Winches will run the day to day operations reporting to Ashtead Technology management with founder, Alfie Cheyne, remaining with the business as an advisor for 12 months to provide strategic and commercial input through a handover and integration period.



As at 31 March 2023, ACE Winches reported gross assets of £55.7m and for the 12 months to December 2023 ACE Winches is expected to generate revenues of c. £43.4m, adjusted EBITDA of £13.7m and adjusted EBITA of £10.0m. Organic growth rates for the enlarged Group are expected to be in line with previous medium term guidance. Pro forma leverage for the enlarged Group as at 31 December 2023 is expected to be less than 1.4x, with the Group de-leveraging to less than 1x by December 2024.



Current Trading

The Board continues to be very encouraged by the Group's performance through H2 2023 and now expects FY23 to be comfortably ahead of its previous expectations before taking into account the additional growth from ACE Winches.
Ashtead Technology share price data is direct from the London Stock Exchange

Your Recent History

Delayed Upgrade Clock