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Aggreko PLC Results in line with market expectations despite currency headwinds

Aggreko PLC (LON:AGK), today announced results for the twelve months ended 31 December 2018

Chris Weston, Aggreko PLC Chief Executive Officer, commented:

“We are pleased to report results which continue the positive momentum demonstrated at the interims. We have delivered results in line with market expectations and ahead of our guidance at the start of the year, with 10% growth in the Group’s underlying profits. The overall result was supported by a strong performance in Rental Solutions, which represents 52% of the Group’s revenue. With the wide-ranging initiatives we are implementing to improve our operational and capital efficiency, we are confident we can meet our mid-teens ROCE target in 2020.”

Results summary

· Good underlying1 Group revenue growth of 8%

o Rental Solutions underlying1 revenue up 22% (52% of Group revenue)

o Power Solutions Industrial underlying1 revenue up 7% (27% of Group revenue)

o Power Solutions Utility underlying1 revenue down 14% (21% of Group revenue), reflecting known off-hires

· Profit before tax of £182 million, up 10% on an underlying1 basis and in line with market expectations despite currency headwinds

· ROCE of 10.3% (2017: 10.7%), up 0.5 percentage points on an underlying1 basis

· Operating cash flow of £423 million (2017: £450 million), impacted by cash outflows relating to mobilisation activities on a number of new contracts

· Working capital outflow of £56 million (2017: £53 million), including £60 million outflow on payables

· Fleet capex of £196 million (2017: £246 million), reflecting increased discipline and focus on utilisation

· Full year dividend maintained at 27.1 pence

· Awarded the supply contract for temporary electricity generation for the Olympic and Paralympic Games in Tokyo, worth an expected $200 million revenue in 2020

· Plans to improve ROCE are well under way, including the launch of our £50 million cost reduction programme