Financial Releases
Results for the Full Year ended 31 December 2010
10 Mar 2011
Results for the twelve months to 31 December 2010 earnings per share up 27%; dividend up 50%; £150 million return of capital
Aggreko plc, the world leader in the supply of temporary power and temperature control, announces its results for the twelve months to 31 December 2010.
|
2010 (1) |
2009 (1) |
As
reported (1) |
Constant
currency (1) |
| Group revenue |
£1,229.9m |
£1,023.9m |
20.1% |
17.4% |
| Group revenue excl pass through fuel |
£1,155.7m |
£965.9m |
19.7% |
16.9% |
| Trading profit (2) |
£314.5m |
£255.0m |
23.3% |
20.2% |
| Profit before tax |
£307.1m |
£246.5m |
24.6% |
|
| Earnings per share |
80.08p |
63.30p |
26.5% |
|
| Dividend per share |
18.90p |
12.60p |
50.0% |
|
(1)All figures in the table above and elsewhere unless otherwise stated are before amortisation of intangible assets arising from business combinations (2010: £2.7m pre-tax, £1.9m post-tax; 2009: £2.5m pre-tax, £1.7m post-tax) as management believe that the exclusion of such items provides a better comparison of business performance. On a statutory basis, post amortisation trading profit was £311.8m (2009: £252.5m), post amortisation profit before tax was £304.4m (2009: £244.0m) and post amortisation earnings per share were 79.37p (2009: 62.67p).
(2) Trading profit represents operating profit before gain on sale of property, plant and equipment. |
Highlights:
- Another record performance, with revenue increasing 20% and earnings per share up 27%; highest-ever levels of margin, earnings and return on capital employed
- Strong performance by Local businesses; revenues up 24% and trading profit up 45%
- Outstanding year for major events: £87m of revenue from Vancouver Winter Olympics, FIFA World Cup and Asian Games. Selected to be exclusive supplier of Temporary Energy Services for London 2012
- International Power Projects; revenues up 8% and trading profit up 5%
- Record 1,300 MW of new work secured in 25 countries; over 50% of International Power Projects fleet now on rent in Asia and Central & South America; 2010 closing order book up 60% on prior year
- Strong momentum; 14% year-on-year increase in MW on rent at start of 2011
- Record fleet capex of £320m planned for 2011; £30m invested in bolt-on acquisitions in last three months
- Substantial increase in returns to shareholders
- Dividend up by 50%
- Plan to move from Net Debt to EBITDA of 0.3 times to around 1 times in next 2-3 years; an initial return of capital to shareholders of £150m proposed for 2011
- Demonstrates continued strength of operating cashflows and confidence in business model
Philip Rogerson, Chairman, commented:
“I am pleased to report that Aggreko has produced another strong set of results, and that we are in a position to increase returns to shareholders substantially, while continuing to invest at record levels in growing the business.”
“The current instability in some countries in the Middle East and Africa makes the task of predicting the outcome for the year more than normally difficult. Our global scale and diversification of risk exposures will be helpful as we manage through this period of uncertainty, and we anticipate that for the year as a whole trading profit in 2011 will be at a similar level to 2010. Allowing for currency movements and the £87 million of major events revenue in 2010 which will not recur in 2011, this would represent underlying growth of around 15%.”
Rupert Soames, Chief Executive, commented:
“2010 demonstrated the strength of Aggreko’s business model. A hat-trick of major events has allowed us to deliver strong earnings growth while our International Power Projects business completely re-structured its order book and delivered the key strategic objective of improving the regional balance of business between Africa, the Americas and Asia. We go into 2011 with strong momentum, a record order book in International Power Projects, and continued strong demand driven by the world-wide shortage of power.”
“We expect both International Power Projects and our Local businesses to deliver good growth on an underlying basis in 2011, and to support this, fleet capital investment in 2011 is expected to increase by 26% to a record £320 million.”
Regional performance metrics:
|
Revenue millions |
Constant currency change |
Trading Profit millions |
Constant currency
change |
|
2010 |
2009 |
% |
2010 |
2009 |
% |
| North America |
$380.1 |
$309.8 |
21.3% |
$72.4 |
$55.9 |
28.0% |
| Europe & Middle East |
£261.8 |
£249.6 |
5.5% |
£41.8 |
£35.5 |
17.3% |
| International Local business |
£187.7 |
£96.8 |
70.9% |
£55.9 |
£24.1 |
103.2% |
| International Power Projects excl fuel |
$711.5 |
$661.3 |
7.6% |
$259.9 |
$247.6 |
4.9% |
- ENDS -
Enquiries to:
Angus Cockburn / Rupert Soames
Aggreko plc
0141 225 5900
Neil Bennett / George Hudson
Maitland
020 7379 5151
View the complete Preliminary Results document (PDF, 768 Kb).
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