Aggreko meets market expectations despite slip in profits

Writer, Stock Market Wire
Wednesday, March 6, 2019 - 07:54

Temporary power unit renter Aggreko said Wednesday full-year results were in line with market expectations as stronger pound kept a lid on profits.

For the 12 months ended 31 December, reported pre-tax profits fell 4% to £182m that beat the company's expectations for a pre-tax profit of about £154m, in line with 2017. Revenue rose 8% to £1.76bn.

Operating profit grew fell 2% to £209m, but or rose 10% when the impact of currency moves is removed.

Revenue performance was helped by a 22% underlying revenue growth in its largest Rental Solutions unit, which contributed to 52% of overall revenues.

The power solutions industrial division saw revenue increase 7%, and the power solutions utility division saw revenues slip 14%.

Full year dividend was maintained at 27.1p a share.

The company said its outlook for the group in 2019 was in line with the market's expectations, but said there would be a greater weighting to the second half than in 2018.

'We are pleased to report results which continue the positive momentum demonstrated at the interims. We have delivered results in line with market expectations and ahead of our guidance at the start of the year, with 10% growth in the Group's underlying profits,' said Chris Weston, Chief Executive Officer.

'The overall result was supported by a strong performance in Rental Solutions, which represents 52% of the Group's revenue. With the wide-ranging initiatives we are implementing to improve our operational and capital efficiency, we are confident we can meet our mid-teens ROCE target in 2020.'


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