The company was purchased last June by the Hugh Osmond vehicle, Horizon Acquisitions, which then renamed itself APR Energy and relisted in September. Investors got to look at the first full set of results after they were delayed due to accounting complexities connected with the acquisition. The hefty reported loss reflects exceptional items connected to the acquisition, listing and the value of some contracts written down. However, the pro forma figures give a better picture of progress made with underlying revenues up 69 per cent to $213m (£133m) year-on-year and pre-tax profit rising 91 per cent to $57m. This reflects the rapid growth and investment in the power rental fleet, which more than doubled in size to 900 megawatts (MW).
Chief executive John Campion said the business expects to spend between $230m and $260m on fleet investment in the current financial year to grow capacity to around 1,300MW. In the year to date, APR has been awarded new projects in Oman, Angola, Cyprus and Mexico, bringing in 284MW of capacity.
Broker Investec forecasts current year adjusted EPS of 74.9¢, rising to 89¢ in 2013.
|APR ENERGY (APR)|
|ORD PRICE:||966p||MARKET VALUE:||£756m|
|TOUCH:||958-966p||12-MONTH HIGH:||1,155p||LOW: 825p|
|DIVIDEND YIELD:||1.0%||PE RATIO:||na|
|NET ASSET VALUE:||1,433¢*||NET CASH:||$63.1m|
|14 months to 31 Dec||Turnover ($m)||Pre-tax profit ($m)||Earnings per share (c)||Dividend per share (p)|
Ex-div: 2 May
Payment: 29 May
*Includes intangible assets of $639m, or 817¢ a share
APR Energy has had a shaky start to its listed life in London with the delayed accounts spooking investors. On 20 times prospective earnings, falling to 17 times 2013 estimates, the shares are no better than a hold.
Last IC view: Hold, 840p, 21 Mar 2012