Aggreko confident of hitting FY guidance after solid underlying first half
Temporary power supplier Aggreko said first half pre-tax profits fell 7% to £59m, with revenues up 10% to £857m.
On an underlying basis, profits for the term were up 8%, the company said. The dividend remained flat at 9.38p a share.
Underlying group revenue rose 14%, driven by a strong performance in Aggreko's rental division which offset the decline in its power operation.
The operating margin was 9%, compared with 10% in 2017. This resulted in a fall in the group's return on capital employed to 11% from 12%.
Diluted earnings per share were 15.85p from 17.88 pence, excluding exceptional items.
Chief executive Chris Weston said the company was on track to meet full year guidance.
“As we continue to execute on our strategy, we have also completed a comprehensive review of the group's expected performance over the medium term,” he said.
“Based on this review, and the detailed action plans we have developed, we are confident that the group can deliver a return on capital employed in the mid-teens in 2020 with potential for further improvement beyond this."