Aggreko returns to revenue growth
Aggreko, the portable power and generator firm with its UK base at Cannock, has hailed a return to revenue growth over the last year.
Taking out the impact of currency movements and fuel, revenue rose four per cent to £1.73 billion, but operating profit was down 10 per cent.
Pre tax profit was down £26 million to £195m, although Aggreko said this was "in line with expectations".
Aggreko's chief executive, Chris Weston, said: "I am pleased that we are seeing revenue growth return, with strong performances in both Rental Solutions and Power Solutions Industrial. As expected, the challenges in Power Solutions Utility held back the group overall.
"Over the last three years we have stabilised the business, enhanced our service offering and positioned ourselves to prosper in rapidly changing energy markets. We have delivered over £100 million in cost savings, invested in new systems and processes and developed new technology, all of which enables us to provide high quality solutions for customers."
Looking ahead, he said: "We expect 2018 group profit before tax to be in line with last year, on a constant currency basis."
The return to growth at its Rental Solutions arm - up nine per cent - was boosted by a £23m benefit from the hurricanes in North America last year. But the impact of legacy contracts for the Power Solutions Utility business in Argentina continue to impact on overall figures. Stripping them out, revenue would have been up nine per cent and operating profit 13 per cent.
Aggreko also saw improving inflows of operating cash, up to £450m compared to £388m in 2016, as its working capital initiative begins to deliver results.
