A dire set of full-year results from APR Energy (APR) will come as little surprise to investors in the temporary power provider. After the group failed to ratify its contract with the Libyan government to provide around 450MW of power to the country, it decided to suspend operations and finally redeployed its equipment at the start of this year.
As a result, APR was forced to book a $717m (£480m) non-cash impairment, $677m of which reflected goodwill and other intangible assets. It also made a $47m provision for trade receivables it is unlikely to receive, most of which related to its Libyan operations. These one-off charges meant the group made an operating loss of $703m in 2014, and also canned its final dividend. Ominously, management said it would "move away from a regular dividend and instead pay a dividend if and when the board deems it appropriate".
There was better news on contracts. Management managed to extend 85 per cent of contracts last year, amounting to a total of more than 1.7GW. It also won 262MW in new deals in Myanmar, Australia and the South Pacific.
Broker Numis expects adjusted cash profits of $123m this year, down from $189m in 2014.
APR ENERGY (APR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 328p | MARKET VALUE: | £309m | |
| TOUCH: | 328-334p | 12-MONTH HIGH: | 820p | LOW: 146p |
| DIVIDEND YIELD: | 1.0% | PE RATIO: | NA | |
| NET ASSET VALUE: | 674¢ | NET DEBT: | 86% | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 126 | 29.8 | na | nil |
| 2011 | 213 | 57.3 | 51.7 | 10 |
| 2012 | 266 | -4.9 | -19.1 | 10 |
| 2013 | 308 | 27.5 | 24.4 | 10 |
| 2014 | 486 | -724 | -796 | 3.3 |
| % change | +58 | - | - | -67 |
*£1=$1.48 | ||||
