Aggreko (AGK)

Sector:

Support

Index:

FTSE 250

782.80p
   
  • Change Today:
    -1.60p
  • 52 Week High: 858.40
  • 52 Week Low: 691.80
  • Currency: UK Pounds
  • Volume: 95,542
  • RiskGrade: 105

Aggreko beats expectations but currency headwinds stifle profits

By Duncan Ferris

Date: Wednesday 06 Mar 2019

LONDON (ShareCast) - (Sharecast News) - Aggreko's shares edged upwards on Wednesday after the company beat its own guidance following strong performances from its rental business and power solutions industrial unit.
For the past calendar year, the temporary power generation and temperature control specialist generated profit before tax of £182m, down 4% compared to the previous year after the company was hit by foreign exchange rate headwinds, though pre-tax profit did rise by 10% on an underlying basis.

Good growth in North America contributed to 22% expansion of Rental Solutions revenues, which represents 52% of the group's revenue, was key, helping group revenue increase 4% to £1.7bn. There was a 7% increase in underlying revenue from the power solutions industrial unit, as demand improved in Latin America.

However, revenue fell by 14% in the power generation utility business, dropping to £342m due to off-hires in Zimbabwe, Bangladesh and Japan, and lower volumes and pricing in Argentina.

At 31 December the FTSE 250 traded company had cash and cash equivalents of £85m, up from £71m at the same point the year before, while dividend per share was maintained at 27.1p.

As well as having dented profits, currency headwinds led to a decline in the return on capital employed to 10.3% from 10.7%, though underlying ROCE increased by 0.5%.

"Our outlook for the group in 2019 is in line with the market's expectations, despite currency headwinds and the impact of IFRS 16, although with a greater weighting to the second half than in 2018," said chief executive Chris Weston.

"In addition, the performance initiatives we announced in August, to drive operational and capital efficiency, are beginning to take effect and we expect to make progress this year towards our mid-teens ROCE target in 2020."

A note from analysts at Peel Hunt stated that the interims had presented "no major surprises" and maintained targets of profit before tax of £196.6m for 2019, though added that management's target of 15% ROCE in 2020 was "looking challenging".

Aggreko's shares were up 0.55% at 735.20p at 0932 GMT.

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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 782.80p
Change Today -1.60p
% Change -0.20 %
52 Week High 858.40
52 Week Low 691.80
Volume 95,542
RiskGrade 105

Aggreko Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
7.9% below the market average7.9% below the market average7.9% below the market average7.9% below the market average7.9% below the market average
14.75% below the sector average14.75% below the sector average14.75% below the sector average14.75% below the sector average14.75% below the sector average
Price Trend
25.49% below the market average25.49% below the market average25.49% below the market average25.49% below the market average25.49% below the market average
11.81% below the sector average11.81% below the sector average11.81% below the sector average11.81% below the sector average11.81% below the sector average
Income
9.34% above the market average9.34% above the market average9.34% above the market average9.34% above the market average9.34% above the market average
3.37% below the sector average3.37% below the sector average3.37% below the sector average3.37% below the sector average3.37% below the sector average
Growth
68.19% below the market average68.19% below the market average68.19% below the market average68.19% below the market average68.19% below the market average
74.58% below the sector average74.58% below the sector average74.58% below the sector average74.58% below the sector average74.58% below the sector average

What The Brokers Say

Strong Buy 3
Buy 1
Neutral 4
Sell 1
Strong Sell 4
Total 13
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-Oct-2019

Time Volume / Share Price
11:25 400 @ 782.80p
11:25 380 @ 782.60p
11:25 287 @ 782.40p
11:25 370 @ 782.40p
11:25 235 @ 782.20p

Aggreko Key Personnel

CEO Chris Weston
CFO Heath Drewett

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