Financial Releases

Preliminary Results for the twelve months to 31 December 2005

09 Mar 2006

Aggreko plc, the world leader in the supply of temporary power, temperature control and oil-free compressed air services, announces its preliminary results, prepared in accordance with International Financial Reporting Standards (IFRS), for the twelve months to 31 December 2005.

Movement

Twelve Months
to 31 December
2005

Twelve Months
to 31 December
2004

As reported

Constant
Currency

Group revenue

£417.7m

£323.6m

29.1%

27.7%

Trading profit (1) (2)

£59.6m

£45.1m

32.2%

30.2%

Profit before tax (1)

£56.4m

£42.5m

32.8%

Earnings per share (1)

13.81p

10.83p

27.5%

Dividend per share

6.11p

5.82p

5.0%

(1) Pre- 2004 exceptional items (2) Trading profit represents operating profit before gain on sale of property, plant and equipment. Aggreko’s trading performance in 2005 has been very strong, and reflects the successful implementation of the new strategy as set out in 2004, as well as robust demand in most markets. Reported revenue increased by 29.1% to £417.7 million. Excluding 2004’s exceptional items, Group pre-tax profits increased by 32.8% to £56.4 million, and basic earnings per share grew by 27.5% to 13.81 pence. Underlying growth (excluding pass-through fuel, currency movements and one-off storm revenues) was 19.2% for revenues and 18.7% for trading profit. The proposed final dividend is 3.77 pence which, when added to the interim dividend of 2.34 pence, represents an increase of 5.0% over 2004. Key points include:
  • Revenues, trading margins and return on capital employed all show good progress
  • Broadly-based top-line growth:
    • Revenues grow by over 30% in North America, Middle East, Asia, Africa, Spain and South America.
  • International Power Projects has very strong second half – revenue up 45% and trading profit by 32% on prior year.
    • Power projects in 41 countries in 2005.
  • Early signs of recovery in Europe; trading profit flat year-on-year in second half, despite €2.4m reorganisation charge.
  • North America revenue up 31% and trading profit up 58%; business responds rapidly to Hurricanes Rita and Katrina and plays key role in reconstruction effort.
    • Approximately £10 million of 2005 revenue and £5 million of profit related to exceptional storm-related activity in North America unlikely to recur.
  • ERP rollout in North America and Europe largely complete
Philip Rogerson Chairman of Aggreko, commented: “This has been an exceptionally strong year for Aggreko, and a vindication of the strategy we set out in 2004. Our North American business has had an exceptional year, and Aggreko International has also performed very strongly. In Europe, there are some early signs of recovery, which we expect to continue in 2006. “As always at this early stage, there is limited visibility of the likely out-turn for the current year, but, notwithstanding the exceptional events of 2005, we expect to make further progress in 2006." Rupert Soames Chief Executive of Aggreko commented: “Aggreko performed very well in 2005. In part this has been due to the hurricanes in North America, but this should not disguise the fact that in 2005 we grew revenues by more than 30% in North America, the Middle East, Asia, Africa, Spain and South America. Our efforts to improve margins and returns on capital employed in the Local business have paid off handsomely, as has our drive to increase the reach of our International Power Projects business, which had projects running in 41 countries in 2005. “We have largely completed the actions set out in our Strategy Review in 2004, and we are looking forward to taking the business onto the next stage of its development as we reap the benefits of the investments we have made in systems, processes and in extending our geographic coverage. “We foresee continuing growth in demand in many of our markets, and we are increasing our rate of capital investment in new fleet to enable us to take advantage of the opportunities we see ahead. We will also be increasing our efforts to find suitable bolt-on acquisitions.”
- ENDS -
Enquiries to:
Rupert Soames / Angus CockburnTel: 0141 225 5900
Aggreko plc
Fiona PiperTel: 020 7379 5151
Maitland
To view the complete Preliminary Results document in portable document format (PDF) click here (251 Kb). This document can be viewed using Adobe Acrobat® Reader, which is free to download.
Back to top