Financial Releases

Preliminary Results for the twelve months to 31 December 2004

03 Mar 2005

Aggreko plc, the world leader in the supply of temporary power, temperature control and oil-free compressed air services announces its preliminary results for the twelve months to 31 December 2004.

The Group’s underlying trading performance in 2004 was strong, driven by a sharp turnaround in North America and robust growth in Aggreko International. This performance was diluted by movements in exchange rates and, in particular, the weakening in the US dollar. As reported, Group revenue at £323.6 million showed a decline of 2.5% compared with 2003; however, in constant currency1 revenue increased by 5.0%. Group trading profit, pre-exceptional items, was similarly affected, increasing by 7.5% on a reported basis, but by 19.2% in constant currency.

Movement

12 Months
to 31 December
2004

12 Months
to 31 December
2003

As reported

Constant
Currency

Group turnover

£323.6m

£331.8m

(2.5%)

5.0%

Of which:
North America

£107.4

£110.8m

(3.1%)

8.4%

Europe

£106.2m

£113.1m

(6.1%)

(4.9%)

International

£110.0m

£107.9m

1.9%

13.0%

Trading profit pre-exceptional

£45.2m

£42.1m

7.5%

19.2%

Profit before tax pre-exceptional

£42.6m

£40.1m

6.3%

Profit before tax post-exceptional

£27.6m

£40.1m

(31.1%)

Earnings per share pre-exceptional

10.86p

10.17p

6.8%

Earnings per share post-exceptional

7.04p

10.17p

(30.8%)

Dividend per share

5.82p

5.65p

3.0%

1Constant currency takes account of the impact of translational exchange movements in respect of our overseas businesses.

Key points include:

  • Profit before tax of £42.6m ahead of expectations; trading profit up 19.2% on constant currency basis.
  • Sharp turnaround in North America: trading profit in constant currency more than doubled, and trading margin increased from 8.2% to 15.4%.
  • Strong performance in Aggreko International: revenues in constant currency up 13.0% and trading profit up 19.4%.
  • In Europe, revenues fell 4.9% in constant currency and trading profit fell 41.9%, due to sluggish demand in core markets and the temporary disruption, previously reported, caused as we implement our new operating model.
  • Net debt reduced by £17.8m to £82.1m.
  • Good progress against strategy announced in March 2004:
    • New Local business operating model implemented in North America and Europe
    • Good results from first implementations of new ERP system
    • Excellent progress in geographic expansion of International Power Projects business: revenues in key target market of South America up fourfold on 2003
    • Launch of new gas-fuelled temporary power solution
    • £5.1m savings against fleet capex from value-engineering and improved procurement

Chairman Philip Rogerson commented:

“I am pleased to report that good progress has been made in line with our strategy which we announced last year. In the Local business, the new management structure is now well established and rental centres are operational in both Europe and North America. In the International Power Projects business, good progress has been made in growing our revenues in new countries, and in particular in South America.

“As is always the case at this time of year, we have limited visibility with respect to the outcome for 2005. We anticipate that, for the year as a whole, we will continue to make progress compared with 2004.”

Chief Executive Rupert Soames commented:

“We are now halfway through our two-year restructuring programme, and have made good progress thus far. When we announced our new strategy we said that there would be some disruption as we re-organised large parts of the business, but it is very pleasing to see that, despite this, trading performance has improved significantly over the prior year. The sharp turnaround in North America has been a key driver of this improvement.

“I am also pleased to announce that we have developed a new gas-fuelled temporary power solution, which will broaden the portfolio of services we can offer to our customers, and which will allow us to address new markets where gas would be a preferred source of energy.”

- ENDS -

Enquiries to :

Rupert Soames / Angus Cockburn Tel: 0141 225 5900
Aggreko plc
Fiona Piper Tel: 020 7379 5151
Maitland

To view the complete Final Results document in portable document format (PDF) click here (1.36 Mb).

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