Aggreko share price edges higher after full-year results meet expectations
The power generator supplier saw its share price climb a touch higher on Wednesday after its 2018 results fell in line with market expectations despite currency headwinds.
Aggreko saw its share price rally slightly on Wednesday after it announced that its full-year 2018 results met market expectations and exceeded its own guidance to shareholders, despite the currency headwinds.
‘We are pleased to report results which continue the positive momentum demonstrated at the interims,’ Aggreko CEO Chris Weston said.
‘With the wide-ranging initiatives we are implementing to improve our operational and capital efficiency, we are confident we can meet our mid-teens ROCE target in 2020.’
Aggreko results: key figures
The FTSE 250 company saw group revenue increase by 4% to £1.76 billion, but pre-tax profit slipped 4% on a reported basis to £182 million, hit by foreign exchange headwinds.
‘We have delivered results in line with market expectations and ahead of our guidance at the start of the year, with 10% growth in the group's underlying profits,’ Weston added.
‘The overall result was supported by a strong performance in Rental Solutions, which represents 52% of the Group's revenue.’
Aggreko was able to maintain its dividend at 271.1p a share. The company’s stock edged 1.09% higher to hit £7.39 a share in early morning trading on Wednesday.
Aggreko wins $200 million 2020 Tokyo Olympics contract
The power generator supplier used its recent trading update to reiterate how confident it is in its ability to hit its mid-teens ROCE target in 2020, with the company bolstered by its successful bid to provide temporary electricity systems for the Tokyo 2020 Olympic and Paralympic Games.
The agreement, which was signed in December last year, will see Aggreko supply generators and distribution systems to support the games across 43 competition venues.
‘We are delighted to have secured what is one of the most prestigious event contracts won by Aggreko,’ Weston said in a statement.
‘Our experienced team will support the Tokyo 2020 Organising Committee to ensure our role in the success of the 2020 Olympic and Paralympic Games is flawlessly delivered.’
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