John Lawson, an analyst at broker Investec Securities, believes that Aggreko (AGK) is "a tough stock to call at present". It's a view borne out by a mixed showing at the half-year stage. The share price of the temporary power supplier fell by over 6 per cent due to a dip in reported half-year earnings, but this needs to be set against Aggreko's strong performance in the Americas and a healthy prospect pipeline.
In fact, revenues were up by 14 per cent in the Americas to £317m, while the region overtook Asia-Pacific as the biggest geographic contributor to operating profits after a 22 per cent rise to £67m. The power projects division, which operates power plants for use in temporary crises, recorded flat revenues and a 9 per cent contraction in operating profits (ex pass-through fuel). And while revenues are expected to pick up through the remainder of 2013, Aggreko does not expect order intake within the division to improve in the immediate future. Overall, comparative group operating profits were marginally down to £157m, while the Aggreko's return on capital employed fell to 22 per cent from 26 per cent during the first half of 2012.
Broker Investec Securities expects 2013 EPS of 91.7p (from 101.7p in 2012)
| AGGREKO (AGK) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,647p | MARKET VALUE: | £4.4bn | |
| TOUCH: | 1,644p-1,647p | 12-MONTH HIGH: | 2,415p | LOW: 1,548p |
| DIVIDEND YIELD: | 1.5% | PE RATIO: | 16 | |
| NET ASSET VALUE: | 423p | NET DEBT: | 49% | |
| Half-year to 30 June | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 734 | 146 | 41.0 | 8.3 |
| 2013 | 760 | 144 | 39.3 | 9.11 |
| % change | +4 | -1 | -4 | +10 |
Ex-div: 4 Sep Payment: 4 Oct | ||||
