The stronger pound was a major headache for Aggreko (AGK) in the first half. The group generates a large chunk of its revenues in US dollars, euros and Australian dollars, all of which weakened against sterling. That wiped £80m off reported revenue and £23m off adjusted operating profit.
Strip out that currency hit and adjusted operating profit would have been up 6 per cent year on year. Management made some encouraging noises on underlying trading. The 'local' business, which hires out equipment for clients to operate themselves, reported a 10 per cent increase in underlying revenues to £431m. Business associated with the Brazil World Cup and Glasgow Commonwealth Games contributed around £9m of that, with good growth in emerging markets the other key driver.
The 'power projects' division, which sells electricity to governments and utilities, has had a tough time of late, as the drop off in US military work from Afghanistan and in Japan post-tsunami operations left a bit of a hole. Interim chief executive Angus Cockburn said the first-half performance was "encouraging", but that he was not yet ready to call the bottom. Mr Cockburn will step down at the end of September, with chairman Ken Hanna holding the fort until new chief executive Chris Weston - formerly of Centrica - joins some time next year.
Broker Peel Hunt makes no change to its full-year earnings per share forecast of 78.6p (2013: 92p).
| AGGREKO (AGK) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,765p | MARKET VALUE: | £4.5bn | |
| TOUCH: | 1,762-1,765p | 12-MONTH HIGH: | 1,842p | LOW:1,501p |
| DIVIDEND YIELD: | 1.5% | PE RATIO: | 20 | |
| NET ASSET VALUE: | 380p* | NET DEBT: | 55% | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 760 | 144 | 39.3 | 9.11 |
| 2014 | 768 | 130 | 36.5 | 9.38 |
| % change | +1 | -10 | -7 | +3 |
Ex-div:03 Sep Payment:03 Oct *Includes intangible assets of £151m, or 59p a share | ||||
