Hunting PLC on Wednesday said it is targeting a significant increase in revenue over the next years, laying out its 2030 strategy as it sees itself established as a manufacturer of precision engineered high reliability products.
At its capital markets day, the London-based equipment manufacturer for the energy industry said it is targeting sales of around $1.3 billion by 2025 and $2.0 billion by 2023. For 2022, the company had reported revenue of $725.8 million, which was a 39% jump from $521.6 million in 2021.
Chief Executive Officer Jim Johnson said: ‘We are excited to present our focused growth strategy and the ambitious targets associated with it. Hunting’s product portfolio of industry leading, intellectual property protected technology and manufacturing expertise, coupled with the strong market dynamics we can see unfolding, give us confidence in our ability to deliver on our ambitions.’
Further, Hunting aims to deliver dividend growth of over 10% per year, with potential for further share buybacks. In 2022, its annual dividend rose by 13% to 4.5 US cents from 4.0 cents.
The company reiterated its forecasts for 2023 and 2024.
For 2023, it expects earnings before interest, tax, depreciation and amortisation to jump by at least 85% to between $96 million and $100 million, from $52.0 million in 2022. For 2024, Ebitda is set to further grow by at least 25% annually to between $125 million and $135 million.
Describing the company as established as a global manufacturer of precision engineered, high reliability products, CEO Johnson sees the company on a path to enter into high-margin, high-growth sectors, focused on growth, innovation and service for long-term energy requirements globally.
He added: ‘Over the last few years, Hunting has delivered a consistent recovery, during which it optimised its operating footprint, grew sales and enhanced margins, all of which leaves the company well placed to deliver strong growth and shareholder returns through the remainder of this decade and beyond.’
Hunting shares rose 3.9% to 268.00 pence each on Wednesday morning in London.
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