Aggreko special divi stabilises boat

Temporary power services provider Aggreko announced on Thursday a drop in full-year profit to £246 million from £276 million in 2012, after nine consecutive years of growth. Profit before taxation was £333 million, down from £367 million last year, and earnings per share fell to 92.03 pence from 103.86 pence.

For the twelve months ended 31 December 2013, revenue slipped to £1.573 billion from £1.583 billion, in the prior year. Underlying revenue was up 4% on prior year.

The company said it has made an encouraging start to 2014. Its Local business shows good growth with volumes on rent currently up 7% from the previous year, but there is weaker trading in Power Projects.

For 2014, the company expects trading profit to be similar to 2013 on a constant currency basis, but some of the firm's major trading currencies have moved against it and if this continues, there will be a marked impact on its 2014 results.

This year the company should do well on the back of the large power supply contracts for the FIFA World Cup in Brazil and Commonwealth Games in Glasgow, and a six-month 80 megawatt diesel contract in Panama.

Dividends for the year are up 10% with a final dividend of 17.19 pence added to the interim dividend of 9.11 pence, a total for the year of 26.30 pence, and the board announced a special dividend of approximately £200 million, or 75 pence per share.

Aggreko has lost its long-term chief executive Rupert Soames who joins Serco Group in April. News of that appointment helped troubled security and services firm Serco, which has been at the centre of a government investigation that found it had wrongfully charged for work that was not carried out. While Serco's shares rose by 12% on the day of the announcement, while Aggreko's fell by 4%.

On Thursday, however, the shares recovered somewhat, rising 6.2% to 1,671p, against a 52-week low of 1,442p, buoyed by the special and a general sense that the company remains stable with attractive long-term business.