Financial Releases
Aggreko PLC Trading Update and Management Announcement
17 Nov 2004
Aggreko plc, the world leader in the supply of temporary power, temperature control and oil-free compressed air services, is issuing the following trading update and announcement prior to meeting analysts.
Trading Overview
In our Interim Statement issued in September, we stated that we expected profit before tax for the year to 31st December 2004 would be at least £38 million, which was the level achieved last year on a constant currency basis. Largely as a result of strong trading in North America in the period since the last statement, we now expect that profit before tax for the full year will be at least £41.5 million.
In North America, the underlying base business continues to run ahead of last year. Moreover, in recent weeks demand has been underpinned by the most active hurricane season for many years. This has resulted in increased revenue for power equipment and services, and, following the storms, for temperature control equipment used in dehumidification. In addition, demand from government agencies has continued to be strong.
In Aggreko International, performance is in line with expectations. In the projects business, whilst we continue to pursue a number of opportunities, it is unlikely at this late stage that any new work would have a material impact on the trading result for the year. Our local businesses in the Middle East, Singapore and Australia also continue to perform well.
In Europe, performance has been slightly weaker than expected. This weakness is mainly focused in the UK, where a combination of reduced demand and increased competition in the telecommunications sector has led to lower revenues. In addition, pending the implementation of the new ERP system (scheduled to go live in the UK in the second half of 2005), the business continues to bear additional cost and complexity in its administrative processes following the centralisation of back office functions in the new National Rental Centre. On a more positive note, good progress continues to be made in the rollout of our new operating model in Continental Europe, with both our Rental Centres now operational. Our new ERP system is beginning to deliver real operational benefits in the Benelux, and a further milestone in the rollout phase has been passed with the system going live in Germany.
The Company anticipates announcing the preliminary results for the year ending 31st December 2004 on 3rd March 2005.
Announcement – Management Change
At the time of our Strategy Review, completed in March 2004, we stated that the transition to our new operating model would take two years. From this stronger platform Aggreko will want to focus on opportunities for further development, and, in order to explore some of these opportunities, the Company is appointing a new Director of Business Development. We are very pleased to announce that Hendrik Jan Molenaar, currently Managing Director of our European business, has accepted this position. He will be stepping down from the Main Board, but will remain on the Company’s Executive committee, reporting to Rupert Soames.
A search will be started for a new Managing Director of our European business. Hendrik Jan Molenaar will take up his new role on 1st January 2005, at which point he will leave the Board. In the interim period before the appointment of a new European Managing Director, the European businesses will report direct to Rupert Soames.
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For further information, please contact:
| Rupert Soames / Angus Cockburn |
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| Aggreko plc |
Tel: 0141 225 5900 |
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| Fiona Piper |
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| The Maitland Consultancy |
Tel: 0207 379 5151 |