Aggreko (AGK)

Sector:

Support

Index:

FTSE 250

846.20p
   
  • Change Today:
    -7.40p
  • 52 Week High: 869.20
  • 52 Week Low: 693.20
  • Currency: UK Pounds
  • Volume: 261,498
  • RiskGrade: 88

Aggreko profit drops in 2017 as power solutions utility business weighs

By Michele Maatouk

Date: Tuesday 06 Mar 2018

LONDON (ShareCast) - (ShareCast News) - Aggreko lost steam on Tuesday after posting full-year results in line with expectations, as it reported a drop in pre-tax profit on the back of weakness in the power solutions utility business.
Pre-tax profit for 2017 fell to £195m from £221m the year before, while diluted earnings per share declined to 53.94p from 61.95p. Operating profit fell 8% to £229m, while group revenue was up 14% to £1.7bn and the dividend per share was flat at 27.12p.

Cash flow during the year improved to £450m from £388m in 2016, which the company said was down to the working capital initiative beginning to deliver results. In addition, Aggreko's financial position remains strong, with net debt to EBITDA of 1.2 times, in line with the previous year.

The company also said that it expects the Argentina contract for its power solutions utility business to renew, but at a further discount to 2016.

Chief executive officer Chris Weston said: "I am pleased that we are seeing revenue growth return, with strong performances in both rental solutions and power solutions industrial. As expected, the challenges in power solutions utility held back the group overall.

"Over the last three years we have stabilised the business, enhanced our service offering and positioned ourselves to prosper in rapidly changing energy markets. We have delivered over £100m in cost savings, invested in new systems and processes and developed new technology, all of which enables us to provide high quality solutions for customers. We expect 2018 group profit before tax to be in line with last year, on a constant currency basis."

RBC Capital Markets, which rates the stock at 'sector perform', said: "We would expect to see consensus profit before tax come down to circa £180-185m from the current £202m level. That said, the valuation looks undemanding...along with a big short interest."

At 0900 GMT, the shares were down 9% to 659.80p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Aggreko Market Data

Currency UK Pounds
Share Price 846.20p
Change Today -7.40p
% Change -0.87 %
52 Week High 869.20
52 Week Low 693.20
Volume 261,498
RiskGrade 88

Aggreko Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
4.21% below the market average4.21% below the market average4.21% below the market average4.21% below the market average4.21% below the market average
9.4% below the sector average9.4% below the sector average9.4% below the sector average9.4% below the sector average9.4% below the sector average
Price Trend
45.82% above the market average45.82% above the market average45.82% above the market average45.82% above the market average45.82% above the market average
11.29% above the sector average11.29% above the sector average11.29% above the sector average11.29% above the sector average11.29% above the sector average
Income
17.37% above the market average17.37% above the market average17.37% above the market average17.37% above the market average17.37% above the market average
21.43% above the sector average21.43% above the sector average21.43% above the sector average21.43% above the sector average21.43% above the sector average
Growth
66.96% below the market average66.96% below the market average66.96% below the market average66.96% below the market average66.96% below the market average
79.13% below the sector average79.13% below the sector average79.13% below the sector average79.13% below the sector average79.13% below the sector average

What The Brokers Say

Strong Buy 4
Buy 1
Neutral 1
Sell 1
Strong Sell 4
Total 11
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Aggreko Dividends

  Latest Previous
  Interim Final
Ex-Div 05-Sep-19 18-Apr-19
Paid 01-Oct-19 24-May-19
Amount 9.38p 17.74p

Trades for 21-Jan-2020

Time Volume / Share Price
16:38 254 @ 846.20p
16:35 112,161 @ 846.20p
16:29 155 @ 846.80p
16:29 14 @ 846.80p
16:29 18 @ 846.80p

Aggreko Key Personnel

CEO Chris Weston
CFO Heath Drewett

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