Financial Releases

Preliminary Results for the twelve months to 31 December 2009

04 Mar 2010

Aggreko plc, the world leader in the supply of temporary power and temperature control, announces its preliminary results for the twelve months to 31 December 2009.

  2009 pre-
intangible asset
amortisation
2008 pre-
intangible asset
amortisation
Movement pre- intangible asset amortisation 2009 post-
intangible asset
amortisation
As
reported
Constant
currency
Group revenue £1,023.9m £946.6m 8.2% (6.3)% £1,023.9m
Group revenue excl pass through fuel £965.9m £861.9m 12.1% (2.6)% £965.9m
Trading profit (1) £255.0m £202.2m 26.1% 7.0% £252.5m
Profit before tax £246.5m £191.6m 28.7%   £244.0m
Earnings per share 63.30p 46.16p 37.2%   62.67p
Dividends per share 12.60p 10.08p 25.0%   12.60p

(1) Trading profit represents operating profit before gain on sale of property, plant and equipment.
(2) All figures below are stated before amortisation of intangible assets arising from business combinations (2009: £2.5m pre-tax, £1.7m post-tax; 2008: £1.6m pre-tax, £1.0m post-tax) as management believe that the exclusion of such items provides a better comparison of business performance.

Highlights:

 

  • Another strong performance, with the Group delivering record revenues, profits, margins and returns on capital
  • Operating cashflow increased by 56% to £431m (2008: £276m); net debt reduced by 52% to £175m
  • £150m invested in new fleet (1.1x depreciation); average fleet age reduced
  • Continued growth in International Power Projects which is now contributing more than 60% of Group profits
    • 10% more on hire at the end of the year than at the start
    • Strong order intake in H2 carries forward into 2010 : 360 MW of new contracts signed in first 8 weeks
    • Supplied power to a record 56 countries during the year
    • Rate of investment in International Power Projects fleet in 2010 to be increased after encouraging start to the year

  • Local business increased market share in difficult market conditions
    • Power volumes similar to 2008, despite tough comparators
    • Delivered 18% margins and 20% return on capital despite weak demand and lower rates

Philip Rogerson, Chairman, commented:

“Aggreko delivered another record performance in 2009, despite the challenging economic conditions. While we remain cautious about the outlook for the Local business, we are encouraged by the strong start made by International Power Projects in 2010.  As a consequence we are increasing our December guidance for fleet capital expenditure in 2010 by £20 million to £200 million; most of which will be invested in the International Power Projects business.” 

“Given the encouraging prospects for International Power Projects, and the additional fleet investment, we now believe that we will do a little better than we anticipated at the time of our December trading update.”

Rupert Soames, Chief Executive, commented:

“We made very good progress against our strategy in 2009, thanks to another strong performance from International Power Projects.  Group revenues, margins and returns on capital employed all improved on the prior year, to stand at record levels.”

Regional performance metrics:

  Revenue millions Constant currency change Trading Profit millions* Constant currency change
  2009 2008 % 2009 2008 %
North America $309.8 $386.2 (19.5)% $55.9 $85.6 (35.7)%

Europe & Middle East

£249.6 £256.6 (11.6)% £35.5 £43.6 (28.1)%

International Local business

£96.8 £116.3 (25.3)% £24.2 £32.8  (34.8)%

International Power Projects excl fuel

$661.3 $524.1 26.2% $247.6 $143.6 69.6%

* Trading profit is before amortisation of intangible assets arising from business combinations

- ENDS -

Cooling Towers in Australia

Press Release Contact:

Jana Single, Aggreko International
PO Box 17576, Jebel Ali, United Arab Emirates
Tel: +971 4 808 6200
Fax: +971 4 883 5404