6th Mar 2014 08:35
LONDON (Alliance News) - Aggreko PLC Thursday said its pretax profit and revenues largely met expectations in its full year, as both fell in comparison to 2012 when the London Olympics provided the company with strong figures.
The temporary power company said its pretax profit fell 9.3% to GBP333 million from GBP367 million in the previous year, slightly down on its restated expectations of pretax profit of at least GBP335 million, as revenues fell as expected to GBP1.57 billion from GBP1.58 billion in 2012.
The company said the slight fall in revenues was due to exchange rates, lower sales from military work in Afghanistan and post-Fukushima Japan reconstruction operations, and the fact that it received no revenues from the London Olympics, which provided GBP60 million in 2012.
Despite this, the company increased its full year dividend by 10% to 26.30 pence per share, from 23.91 pence per share in 2012, comprising of a final dividend of 17.19 pence and interim dividend of 9.11 pence.
The company tends to do well in years when there are major sporting events such as the World Cup and the Olympics, and it supplied temporary power for the 2012 London Olympics.
In December, the company announced that it has been appointed as temporary power provider to two key sporting events in 2014: the football World Cup and the Commonwealth Games.
The company added in December that, excluding the impact of the Olympics, acquisitions, fuel costs and currency moves, it expected 2013 revenues to be up 3% and trading profit to be flat on the year. In fact, its revenues increased 4% on this basis and its trading profit increased 1%.
Aggreko's underlying revenues increased 9% in Europe, Middle East and Africa and 8% in the Americas, beating previous estimates. However, its revenues fell more than expected by 13% in Asia Pacific, as contracts in Japan came to an end.
The company also noted that strong cash generation reduced its net debt by about GBP230 million over the year to GBP363 million.
In February, Aggreko announced that its Chief Executive Rupert Soames will be leaving the company to join outsourcing company Serco Group PLC. Soames has been head of Aggreko for 11 years, overseeing the temporary power unit company's steady but relentless growth over that period.
The company said on Thursday that the business is performing in line with expectations, and trading for 2014 is expected to be at similar levels to 2013, as growth in its Local business is offset by weaker trading in its Power Projects.
Aggreko shares were up 6.7% to 1,679.00, making it the second biggest gainer in the FTSE 100 in early trading Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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