Investors warm to Aggreko as it retains guidance despite revenue declines
In a trading update for the nine months to 30 September, the FTSE 250 maker of industrial heaters and air conditioning said full-year earnings were expected to be “in line with expectations” with a return on capital employed (ROCE) in the mid-teens for 2020.
This was despite underlying revenues for the firm falling 2% in the nine months, driven by declines in rental solutions, Aggrekos largest segment, and its power solutions utility business, where underlying incomes dropped 1% and 7% respectively.
Lower rental revenue was blamed on a “weaker performance” in the companys Northern European market, as well as tough comparatives in Australia Pacific following an emergency utility contract boosting last years figures.
North America, by contrast, had seen “good growth” despite what the firm said was softening since the half-year.
The decline of power solutions utility, meanwhile, was attributed to the timing of off-hires in 2018 and new work in the period, which decreased the average megawatts on hire by 9%.
The only part of the group to not see a fall was the industrial power solutions arm, however, it only managed to report flat growth for the period.
Aggreko will be hoping to boost its fortunes next year aftRead More – Source