Thursday, Aggreko Plc (AGK.L), a British supplier of temporary power and temperature control, reported a 52% rise in profit for fiscal year 2008, driven by strong segmental revenues, mainly in North America and International Power Projects. The company's Board recommended a final dividend, leading to a 25% jump in total dividend for the year. Further, Aggreko said its outlook for 2009 is well ahead of market expectations at current exchange rates, while at similar levels to 2008 on a constant-currency basis.
Fiscal 2008 profit attributable to equity shareholders was GBP 122.7 million, up from GBP 80.7 million last year. Earnings per share rose to 45.56 pence from 30.02 pence a year ago. Profit before tax grew 52.9% to GBP 190 million from prior year's GBP 124.2 million.
Annual revenues increased 36.6% to GBP 946.6 million from GBP 693.2 million in 2007. The revenue growth was 26.2% in constant currency, while underlying revenue, in constant currency and excluding pass-through fuel, increased 25.6%.
Commenting on the results, Philip Rogerson, Chairman, said, "In the face of the deteriorating global economic backdrop, Aggreko has proved very resilient, delivering another strong performance in 2008 with sharply increased revenue and profits as well as improved margins and returns on capital employed."
Trading profit, i.e., operating profit before gain on sale of property, plant and equipment, rose 51% before intangible asset amortization to GBP 202.2 million from GBP 134.2 million last year.
Segment-wise, local business revenue, in constant currency, increased 18% and trading profit rose 34%. North American revenue increased 14.6% year-over-year to US$386.2 million and trading profit rose 17.1% to US$83.6 million, in spite of the poor macro-economic environment. In Europe, revenue for the year rose 11.2% to GBP 186.7 million and trading profit grew 19.9% to GBP 25.6 million in a challenging economic environment. Aggreko International's local businesses recorded revenues of US$346.6 million and trading profit of US$93.9 million, up 48.7% and 91.8%, respectively, from last year.
International Power Projects' revenue excluding pass-through fuel climbed 44.4% to US$524.1 million, and trading profit by 44.8%, driven by exceptional performance during the year, mainly on the faultless delivery of over 140 MW of temporary power and 480 kilometres of cable to 37 venues for the Beijing Olympics.
Further, the company said its Board is recommending a final dividend of 6.28 pence per ordinary share, with a total dividend for the year of 10.08 pence, a 25.0% increase on 2007. Subject to approval by shareholders, the final dividend will be paid on May 15, 2009 to ordinary shareholders on the register as at April 17, 2009.
Looking ahead, Aggreko said that its performance has been very strong in the first two months of the year, and well ahead of 2008.
In the Local businesses, North American business is currently performing well ahead of the prior year, with the Presidential Inauguration and the Super Bowl as well as continued remediation work following last year's hurricane season. Revenues in new Europe & Middle East region are running slightly above the prior year, in part helped by storms in France and Spain.
"In terms of the outlook for 2009, we have made a very strong start to the year, well ahead of 2008, and expect to make good progress on both a headline and constant-currency basis in the first half. Given that over 70% of our earnings are in US dollars, if we achieve this trading performance, and if the Sterling : US Dollar rate stays at today's level for the rest of the year, reported results would show substantial growth over 2008," the company said in a statement.
At current exchange rates, the outlook for 2009 is well ahead of market expectations, the company said. On a constant-currency basis, trading in 2009 is expected to be at similar levels to 2008.
Aggreko noted that the outlook for the second half is less certain and will depend on how the macro-economic environment develops over the coming months. In the second half, comparatives will also be tough, as the company had the benefit in 2008 of both exceptionally high storm revenues in North America and the Beijing Olympics.
AGK.L is currently trading at 414.50 pence, up 37.25 pence or 9.87%, on a volume of 3.3 million shares.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.