15th Oct 2009 07:00
Aggreko plc
INTERIM MANAGEMENT STATEMENT
Aggreko plc, the world leader in the supply of temporary power and temperature control, is today issuing its Interim Management Statement covering the period from 1 July 2009 to date.
Trading
Total Group revenues in the three months to 30 September 2009 were 8% lower than the same period in 2008; on a constant currency basis, and excluding pass-through fuel, Group revenues decreased by 16%. Group margins have however benefited from a strong performance in our International Power Projects business.
Revenues in our International Power Projects business, in constant currency and excluding pass-through fuel, grew by about 10%. Margins have continued to improve, and trading profits from this business increased much faster than revenues. The third quarter saw an improvement in order intake for new work, and, encouragingly, the number of megawatts we quoted was noticeably higher than in the previous two quarters.
Conditions in the Local business continue to be difficult, with revenues in constant currency down 28%. As previously noted, the third and fourth quarters have particularly tough comparators, with record storm revenues in North America and the Beijing Olympics flattering the 2008 performance. In constant currency, revenues in North America fell 33%; Europe & Middle East fell 15%, and revenues in Aggreko's International Local business were down 42% (-12% adjusted for the Beijing Olympics). Trading margins in the Local business have fallen about 6 percentage points from last year, but remain healthy due to effective cost control. Amongst the products, we had a similar amount of power on rent in the third quarter as in the corresponding period in 2008, but the temperature control business has been very poor, with low ambient temperatures accentuating already weak demand. Rates continue to be weak across all products.
Financial position
Net debt at £227 million has decreased by £61 million in the three months from 30 June 2009 and is £83 million lower than at 30 September 2008, mainly reflecting lower levels of capital expenditure. Current committed facilities stand at over £520m.
Outlook
Notwithstanding the difficult macro-economic conditions, we believe that International Power Projects will continue to perform well during the fourth quarter, and that conditions in the Local business are unlikely to get any worse. For the full year, we now expect that constant-currency profits will be slightly above the level achieved in 2008.
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Enquiries to:
Rupert Soames / Angus Cockburn
Aggreko plc
Tel. 0141 225 5900
Neil Bennett / George Hudson
Maitland
Tel: 020 7379 5151
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