Temporary power specialist APR Energy's (APR) first-half results were hit by the end of a large contract to provide power in Japan, post the tsunami. This meant that the first half was a time of transition as the company's power equipment fleet was being moved around, rather than generating profits. So half-year adjusted operating profits tanked 90 per cent year on year to $5.2m (£3.4m), and reported losses widened.
Still, the company says that the second half will be much stronger as its equipment has been redeployed to projects in Uruguay and Libya, with a 450 megawatt (MW) Libyan contract being its largest ever installation. Management said APR had secured 593MW of new contracts in the first half, which is more than it achieved for the whole of last year, with the order book up 59 per cent on the prior year period. The company also announced a further 174MW of contract wins in Mozambique, Senegal and India on the same day as the results. Moreover, chief executive John Campion says that demand for power equipment in the regions in which the company operates remains strong with "no signs of slowing in emerging markets".
Broker Peel Hunt maintained its full-year adjusted pre-tax profit forecast at $70m, giving EPS of 74.2¢ (from $63.3m and 68¢ in 2012).
| APR ENERGY (APR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,023p | MARKET VALUE: | £800m | |
| TOUCH: | 1,020p-1,025p | 12-MONTH HIGH: | 1,068p | LOW: 589p |
| DIVIDEND YIELD: | 1% | PE RATIO: | na | |
| NET ASSET VALUE: | 1,374¢* | NET DEBT: | 38% | |
| Half-year to 30 Jun | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 87.2 | -1.87 | -8.8 | 3.30 |
| 2013 | 155 | -16.1 | -15.1 | 3.30 |
| % change | +78 | - | - | - |
*Includes intangible assets of $582m, or 744¢ a share £1=$1.55 | ||||
