Aggreko nudges up guidance

4th Mar 2010 07:54

Scottish temporary power solutions provider Aggreko reported record revenues, profits and margins in 2009, helped by foreign exchange tailwinds.Revenue in 2009 grew 8.2% to £1,023.9m from £946.6m in 2008 but was down 6.3% using constant exchange rates (CER).Trading profit, which is operating profit with gains on sale of assets stripped out, jumped 25.9% (6.8% using CER) to £252.5m from £200.6m a year earlier. However, £10m or so of that improvement was due to 2009 being a 53-week year against the 52-week period covered by the 2008 results. Profit before tax surged 28.4% to £244.0m from £190.0m in 2008. Group trading margin shifted up from 21.2% in 2008 to 24.7% in 2009. Return on average capital employed improved by half a percentage point to 29.0%.The group saw continued growth in its International Power Projects division, which now accounts for more than 60% of Aggreko’s profits.The division’s strong performance in the second half of 2009 has continued into 2010 with 360 megawatts of power production booked in the first eight weeks of the current year.The domestic business increased market share in tough trading conditions with power volumes similar to those seen in 2008.‘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 £20m to £200m; most of which will be invested in the International Power Projects business,’ said Philip Rogerson, chairman of Aggreko.Rogerson added that the group now expects to do ‘a little better’ in 2010 than it anticipated at the time of its December trading update.The board has proposed a final dividend of 8.23p, up from 6.28p in 2008, making the full year dividend payment 12.60p. The total dividend in 2008 was 10.08p.