Financial Releases

Preliminary Results for the twelve months to 31 December 2007

06 Mar 2008

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 2007.

Movement pre-intangible asset amortisation

2007 post-
intangible asset
amortisation

2007 pre-
intangible asset
amortisation

2006 (2)

As reported

Constant
Currency

Group revenue

£693.2m

£693.2m

£540.7m

28.2%

35.1%

Trading profit (1)

£132.9m

£134.2m

£86.7m

54.8%

66.1%

Profit before tax

£124.2m

£125.5m

£83.1m

51.0%

Earnings per share

30.33p

30.65p

20.05p

52.9%

Dividend per share

8.06p

8.06p

6.72p

20.0%


(1) Trading profit represents operating profit before gain on sale of property, plant and equipment.
(2) 2006 numbers are pre-exceptional items of £9.2m pre-tax (£7.0m post-tax) related to the acquisition of GE Energy Rentals.
(3) All figures below are stated before amortisation of intangible assets arising from business combinations (2007: £1.3m pre-tax, £0.9m post-tax; 2006: £nil) as management believe that the exclusion of such items provides a better comparison of business performance.

Highlights:

  • Excellent results driven by strong demand, record levels of investment in new rental fleet, and the successful integration of the GE Energy Rentals acquisition
    • Results achieved despite currency movements reducing revenues by £28m and trading profit by £6m
    • Contribution from GE Energy Rentals acquisition has exceeded expectations

  • Local business revenue, in constant currency, increased by 26% and trading profit by 45%
    • Another year of good progress in Europe; trading profit almost doubled and margins improved
    • Revenues grew by over 20% in UK, Italy, Spain, Middle East, Asia, South America and Australia
    • Solid performance from North America: 15% increase in revenues and 18% increase in trading profit

  • Strong demand in International Power Projects drove record levels of fleet utilisation
    • Revenues (excl pass-through fuel) increased by 57% to $363m and trading profit increased by 121% to $99m. Trading margin increased from 20% to 27%
    • 27 new contracts signed in 2007 and many customers extending existing projects
    • 40% increase in fleet capacity to over 2,000 MW, makes Aggreko’s Power Projects fleet largest in the world

  • £172m invested in new fleet (2006: £114m); strong operating cashflow

  • £1bn to be invested in rental fleet over next five years


Philip Rogerson, Chairman, commented:

“Aggreko has delivered another outstanding performance in 2007 with good growth across all our businesses, especially in Aggreko International where the strong demand we have seen over the last few years is unabated. Our European business has continued to build momentum while our North American business has also performed well despite the difficult macro-economic backdrop.”

“Looking ahead, at this early stage it is always hard to come to a definitive view of the outcome for the year as a whole, and particularly so when faced by the current level of uncertainty about the future direction of the various economies in which we operate.  Demand is extremely strong in International Power Projects and across many parts of the Local business, and we believe that the performance in these areas will more than outweigh any weakness that might arise in North America.”

“In our December 2007 Trading Update, we said that we expected to make good progress in 2008; the trading performance in the first few weeks of the year, particularly in our international business,  has reinforced this view and has further increased our confidence.”

Rupert Soames, Chief Executive, commented:

“We have achieved our objective for 2007 of delivering substantial growth in sales and profits, through significantly increased investment in new fleet and the successful integration of GE Energy Rentals.”

“Looking ahead, we believe that the structural imbalance that exists between burgeoning demand for power and insufficient investment in permanent capacity will increase the demand for temporary solutions. Our ability to deliver large amounts of reliable power within days or weeks anywhere in the world, makes us uniquely well-placed to serve this rapidly growing market.”

- ENDS -


Enquiries to:
Rupert Soames / Angus Cockburn Tel: 0141 225 5900
Aggreko plc
Neil Bennett / Charlotte Walsh Tel: 020 7379 5151
Maitland

View the complete Preliminary Results document (PDF, 140 Kb).

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