Aggreko results in line with last year with a good outlook going forward
Shares in back-up power generator company Aggreko jumped more than seven per cent this afternoon after it said it’s on track to meet targets for 2020.
Although group revenue fell eight per cent from £1.7bn in 2018 to £1.6bn in 2019, profit after tax increased from £125m to £129m for the 2019 financial year.
Final dividend per share increased from 17.1p in 2018 to 18.3p in 2019.
Operating cash inflow ballooned 48 per cent from £423m in 2018 to £628m last year.
“We are well-positioned to meet our customers’ evolving needs in the changing energy market, with 185 MW of hybrid work secured and 30 Y.Cubes now under contract, reflecting the growing interest in lower-carbon technology and our new battery storage product,” said boss Chris Weston.
“Going forward we believe that a continued focus on the four strategic priorities first set out in 2015 will underpin the achievement of our mid-teens TOCE target in 2020 and beyond,” Weston added.
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The business noted its rental solutions arm had performed strongly with operating profit increase of 22 per cent.
The power solutions utility arm’s underlying profit also increased 21 per cent.
However, the power solutions industrial arm’s underlying profit fell seven per cent.
Olympics challenge?
Although it has a positive outlook going forward, Aggreko is closely monitoring how coronavirus could affect the world economy.
Specifically, the company is involved with summer Olympic and Paralympic games in Tokyo, which could be disrupted or even cancelled due to the outbreak.
Companies around the world and from sectors including automotive and airline have been affected by the crisis.
Last week saw significant falls in global markets and oil prices as uncertainty around the virus heightened.
Shares in Aggreko closed trading in London up 5.10 per cent.