# Aggreko PLC Results in line with market expectations despite currency headwinds

- Link: https://www.directorstalkinterviews.com/aggreko-plc-results-in-line-with-market-expectations-despite-currency-headwinds/412768683
- Published: 2019-03-06T08:13:04+00:00
- Author: Charlotte Edwards

**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

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