20th Jan 2021 10:48
(Alliance News) - Aggreko PLC on Wednesday said it expects profit for 2020 to exceed the group's own recent guidance, due to a recovery in activity levels across several markets.
For the year, the FTSE 250 power generator rental firm said it expects pretax profit to be ahead of the top end of its guidance range of GBP80 million to GBP100 million.
For 2019, Aggreko's pretax profit was GBP199 million, meaning the guidance range reflects a 50% to 60% year-on-year fall.
More positively, a strong cash performance in the second half of 2020 has led to a reduction in net debt by GBP200 million, leading to a ratio of closing net debt to earnings before interest, tax, depreciation and amortisation of less than one times.
Looking ahead, despite a stronger pound, Aggreko has retained its guidance for 2021's pretax profit to be between GBP170 million and GBP190 million.
Aggreko will publish its annual results on March 1.
Shares in Aggreko were up 2.8% at 657.50 pence on Wednesday in London.
By Dayo Laniyan; [email protected]
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