Interim Results for the six months to 30 June 2013
01 Aug 2013
PERFORMANCE IN LINE WITH EXPECTATIONS; FULL YEAR GUIDANCE MAINTAINED
Aggreko plc, the world leader in the supply of temporary power and temperature control, announces its interim results for the six months to 30 June 2013.
|Group revenue excl pass through fuel
|Trading profit (3)
|Profit before tax
|Diluted earnings per share
|Dividend per share
- First half in line with expectations; underlying revenue up 5% and trading profit similar to prior year.
- Strong performance by Local business; underlying revenue up 9%, margins up 1pp
- Strong first half in Americas and Asia Pacific
- Temperature control revenues up 12%
- Good growth in mini-projects.
- Power Projects trading subdued; underlying revenue similar to prior year, margins down 3pp
- Order intake of 397MW in first half
- Heavy Fuel Oil product well received by customers; 4 contracts signed since launch.
- Further good progress on gas-fuelled generation: around 1,000MW of gas-fuelled capacity on rent; gas revenues over 40% up on prior year.
- Interim dividend to increase by 10% in line with our strategy of reducing full year dividend cover from over 4 times to nearer 3 times.
- Cash inflow of £69 million in first half, and expected to be around £100 million in second half.
Rupert Soames, Chief Executive, commented:
“First half performance was in line with expectations. Our Local business, representing some 60% of revenues, delivered strong underlying revenue growth and margins strengthened; trading in our Power Projects business was, however, subdued relative to its historic performance, with revenues flat on the prior year and margins weaker. In aggregate, Group revenue increased by 5% on an underlying basis and 4% on a reported basis, while trading profit was at similar levels to the prior year.”
“Our expectations for the full year remain unchanged.
We expect revenues in Power Projects to be higher in the second half than in the first, as increased revenues from our gas projects offset reduced revenues from Military and Japan. We also expect to make further progress with our new HFO product, for which we have signed another contract since our June Trading update. We now have a total of four customers for this product in the Americas, Africa and in Asia, underlining the broad appeal that this product will have. However, although the prospect pipeline remains healthy, we do not expect a pick-up in the rate of order intake for the Power Projects business in the immediate future.
On an underlying basis we expect that the Local business will continue to perform well in the second half with margins anticipated to improve year on year, in part reflecting the growth in mini power projects.
We now expect to spend around £240 million on fleet capital expenditure for the full year. As a result of our disciplined approach to capital expenditure, we also expect to deliver strong cash generation in the second half.”
Regional performance metrics:
||Trading Profit millions
|EMEA excl fuel
|Power Projects excl fuel
(1)All figures are before amortisation of intangible assets arising from business combinations (2013: £2m pre-tax, £2m post-tax; 2012: £2m pre-tax, £1m post-tax). On a statutory basis, post amortisation trading profit was £155m (2012: £157m), post amortisation profit before tax was £144m (2012: £146m) and post amortisation diluted earnings per share were 39.27p (2012: 40.91p).
(2)“Underlying” is defined as: adjusted for currency movements, pass-through fuel, the Poit Energia acquisition and the London Olympics.
(3)Trading profit represents operating profit before gain on sale of property, plant and equipment.
- ENDS -
||Rupert Soames / Angus Cockburn
||Tel: 0141 225 5900
||Neil Bennett / Tom Eckersley
||Tel: 020 7379 5151
View the complete Interim Results document (PDF, 642KB).