Temporary power specialist APR Energy is growing rapidly as the world demands more electricity and the company's chief executive, John Campion, now expects full-year results to beat forecasts at the net income level. This news prompted broker Numis to upgrade its full-year adjusted EPS estimates by 4 per cent to 44.4p and lift 2013 forecasts from 57p to 61.2p, implying heady earnings growth of around 37 per cent next year. However, contract delays and the unexpected exit of the chief financial officer leave us cautious.
APR Energy was listed last September after a reverse acquisition by the Hugh Osmond bid vehicle Horizon acquisitions, so reported figures in our table are impacted by one-off deal and listing costs. To get an idea of the progress being made, APR reports its own pro-forma figures for the first half, which show revenue increasing by 162 per cent to $155m (£99m) and pre-tax profits up from $13.9m to $51.8m. This was driven by the expansion of the power generating fleet from 900 megawatts (MW) at the year-end to 1,052MW at the end of June.
Mr Campion said the planned investment in the fleet would rise to between $290m and $310m despite guiding that second-half revenues would be weaker due to contract delays. Rick Greene, chief financial officer, is leaving the group at the end of September and is being replaced by Andrew Martinez, former vice-president of finance.
APR ENERGY (APR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 707p | MARKET VALUE: | £553m | |
| TOUCH: | 705-711p | 12-MONTH HIGH: | 1,155p | LOW: 570p |
| DIVIDEND YIELD: | 19% | PE RATIO: | NA | |
| NET ASSET VALUE: | 1,408c* | NET DEBT: | 6% | |
| Half-year to 30 Jun | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (c) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 11 | -32.3 | -75.3 | nil |
| 2012 | 155 | -1.9 | -8.8 | 3.30 |
| % change | +1318 | - | - | - |
Ex-div: 31 Oct Payment: 27 Nov *Includes intangible assets of $596m, or 762c a share £1=$1.583 | ||||
