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.’
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
See an opportunity to trade?
Go long or short on more than 17,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets
- Forex
- Shares
- Indices
