Portable power group Aggeko generates strong profits

PORTABLE power group Aggreko, whose UK head office is in Cannock, has announced a strong trading performance with full year trading profit up 13% and earnings per share increasing 16%.

Group revenue for the year ended December 31, 2012 rose 14% to £1,583m (2011: £1,396m). Pre-tax profit reached £388m (2011: £327m).

The group said both the Local business and Power Projects continued to deliver strong revenue growth.  Local business reported revenues up 23% and trading profit up 41%.

The performance benefitted from the company’s contracts with the London Olympics, while it also saw a 30% growth in the emerging markets. The group’s North American business was also said to be positive.

Power Projects reported revenues excluding pass-through fuel up 15%, although trading profit was down 1%.

Aggreko chairman Ken Hanna said he was pleased with the group’s progress and the recently-completed Strategy Review underlined the group’s strong position in fast-growing markets.

Rupert Soames, Chief Executive, added: “The Local business has had a very strong start to the year, with almost 20% more power on rent than a year ago, helped in part by our acquisition of Poit Energia in April 2012.  Encouragingly, growth in the Local business has been broadly spread, with most areas other than Europe showing healthy year-on-year increases in MW on hire.
“In Power Projects, we have signed new contracts totalling 140 MW in the year to date, and importantly, we have secured our first large order for our new Heavy Fuel Oil engine, with a 56 MW contract in the Caribbean.  We have also secured a contract for 57 MW of diesel-powered generation in Djibouti.  Trading continues to be subdued and is likely to remain so in the first half; however, in recent weeks there has been some improvement in the prospect pipeline.
“Our expectations for the year as a whole remain unchanged from previous guidance.”