12th Dec 2008 07:02
Aggreko plc
TRADING STATEMENT
Aggreko plc, the world leader in the provision of temporary power and temperature control solutions, is issuing the following trading update for the year ending 31 December 2008.
Trading in the fourth quarter has been very strong, and we expect that total Group revenue in the three months to 31 December 2008 will be about 48% higher than the prior year. In constant currency and excluding fuel, growth will be about 28%. On the same basis, we expect International Power Projects revenue to be 51% up, and in the Local business we expect constant currency revenue to grow by 18%. For the year as a whole, we expect Group revenues to grow by around 36% on a reported basis, and by 25% in constant currency excluding fuel; we anticipate that profit before tax for the year will be slightly ahead of market expectations at about £190 million, at which level it would be 53% up on the prior year.
Our Local businesses have generally performed well in the fourth quarter. North America has held up more strongly than we expected, as revenues from storms have persisted into the fourth quarter, and we have had a particularly strong performance from our cooling tower business; in the first few months following the acquisition of Power Plus in Canada, the new business has performed ahead of plan. In Europe, revenues in the fourth quarter have run at similar levels to the prior year. Elsewhere in the Local business, revenues in the fourth quarter have been well ahead of the prior year in the Middle East, Australia, and in Central & South America.
The International Power Projects business continues to trade very strongly, with revenues excluding fuel and in constant currency in the fourth quarter about 51% ahead of the prior year. In the fourth quarter we put on rent a record 300 MW; the off-hire rate in the fourth quarter has been at comparable levels to previous periods.
Outlook
Looking ahead, we expect that the Group will make further progress in the first half of 2009. Our North American and European businesses have been more resilient than we expected in the face of negative GDP growth, but it is unlikely that they will be able to defy the economic headwinds indefinitely. However, we expect that International Power Projects, which will enter 2009 with over 30% more capacity on rent than at the start of 2008, will perform strongly in the first half, and that it will more than offset any weakness in the Local businesses.
In March 2008, we gave a strategy update in which we indicated that we planned to spend an average of £200m a year on fleet capex between 2008 and 2012. In 2008, we will spend about £260m, and our current plan is to invest around £170m in 2009, a level similar to 2007. However, our ability to adjust capital spending rapidly is an important feature of our business model, and we will manage the rate of fleet investment through the course of the year in the light of demand.
We anticipate that net debt at 31 December 2008 will be around £340m, against committed facilities of £506m. £157m of these facilities are due to be refinanced in September 2009. Discussions concerning the re-financing are proceeding well and, having added £60m to our facilities in recent months, we are confident that arrangements will be completed in the first half.
Preliminary Results will be announced on 5 March 2009.
ENDS
For further information, please contact:
|
Rupert Soames, Aggreko |
Tel: 0141 225 5900 |
|
Angus Cockburn, Aggreko |
Tel: 0141 225 5900 |
|
Neil Bennett, Maitland |
Tel: 020 7379 5151 |
|
Charlotte Walsh, Maitland |
Tel: 020 7379 5151 |
Related Shares:
AGK.L