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LONDON, April 16, 2025--(BUSINESS WIRE)--Hunting PLC (LSE: HTG), the precision engineering group, issues the following Trading Update for Q1 2025, ahead of its Annual General Meeting that will take place today at 10:30a.m. BST in London.
Q1 2025 Trading Update
The Group has traded in line with expectations during the quarter, delivering an EBITDA of c.$38.7 million (Q1 2024 – c.$28.9 million) at an EBITDA margin of 14% (Q1 2024 – 12%).
All product groups have traded in line with management’s expectations in the quarter.
As is typical for this time of year, the Group has invested in working capital in the period to satisfy committed orders, which has led to a net cash outflow in the quarter, leading to a cash and bank / (borrowings) position of c.$58.0 million (31 December 2024 – $104.7 million). This outflow also includes the maturity of certain bank acceptance drafts, in relation to working capital instruments utilised in 2024, and the purchase of Ordinary shares by the Company’s Employee Benefit Trust to satisfy the vesting of future long-term incentive awards, with $3.4 million absorbed purchasing 849,701 Ordinary shares in Q1 2025.
In line with the Hunting 2030 Strategy, in the quarter the Group completed the acquisition of the Organic Oil Recovery technology from its founding shareholders for a consideration of $17.5 million and disposed of its non-core interest in Rival Downhole Tools for a consideration of $13.1 million.
Management continues to assess bolt-on acquisitions, with a number of transactions being progressed during the period. Areas of focus remain subsea and intelligent well completion businesses.
The restructuring of the EMEA operating segment continues, with a projected $10 million annualised cost saving being targeted.
International Trade Tariffs
The Group has assessed the potential international trade tariffs proposed by the US administration and presents in the table below a high-level analysis of the potential impact of these tariffs if they are introduced. The analysis is qualitative and has not been audited.
| Operating Segment | Potential Impact |
| Hunting Titan | - Minimal impact, given the majority of revenue and costs are derived from US- based supply chains. |
| North America | - Minimal impact, given the majority of revenue and costs are derived from US- based supply chains. |
| Subsea Technologies | - Minimal impact, given majority of revenue is derived from non-tariffed countries such as Guyana. |
| EMEA | - No impact, given no sales are into North America. |
| Asia Pacific | - No impact, given no sales are into North America. |
The Directors believe that, subject to international supply chains settling following the announcements made by the US administration in recent weeks, the ongoing impact of tariffs on the Group’s prospects and trading are immaterial and broadly align to the potential impact noted above. This is before taking into account any indirect impact of commodity pricing on the global economy.