Aggreko shares jump despite currency headwinds warning
Power generator hire company Aggreko has reported an eight per cent fall in profit before tax, to 338m last year.
After nine years of growth, last year proved a challenging one for the firm.
but with results in line with what analysts were expectating, and outlook for 2014 better than some had hoped for, shares are up this morning, by over six per cent.
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Trading profit increased just one per cent in 2013, as it readjusted to not having revenues from the London Olympics – which bagged it £60m in 2012. Revenues rose four per cent to £1.6bn.
Lower revenues from military work in Afghanistan and post-Fukushima reconstruction in Japan, along with subdued power projects trading, also dented profit.
Weakening exchange rates were also blamed. Although business is currently in line with expectations, exchange rate fluctuations could mean a “marked translational impact” on 2014’s results, explained chairman Ken Hanna.
Aggreko’s full-year dividend for 2013 was increased 10 per cent, to 26.30p per share.
Local businesses in the US, Europe, the Middle East and Africa saw trading profit up 11 per cent, with revenue growth of seven per cent.