You are probably right although watching the Q&A after the results presentation I got the impression the third loss making division's results may well look worse before they get better offsetting the other two which have been doing well.
It seems a business where there is not much forward visibility re orders, I would be a buyer 650-700p if they slip back, but at 716p they may not.
Agreed. I took a small punt on these at just below 690p.
Can add if need be. I thought the bounce from below 640p implied a bottom.
It was bought up so quick its likely to hold above that, assuming this new guidance holds.
Results in line with expectations said the headline which translated means they were not hence the drop to 640p initially. If you take the adjusted eps of 54p the p/e is 12.6 and on the maintained divi the yield is 4%. Modest for a quality overseas earner with decent growth prospects you would think, but they say 2018 might be similar and on current £ profits would be 8% lower. A lot of moving parts in the results so not easy to assess.
Price currently 681p, methinks this price and rating could be somewhere near the bottom and the shares in a buying range.
"As LSE:KIE:Kier GroupÂ has demonstrated Thursday, the shocking collapse of LSE:CLLN:Carillion doesn't mean investors should turn their backs on the support services sector.Analysts at Peel Hunt have sifted through the fall-out from Carillion's ..."
Interesting premise, which may strengthen the management team - I bought into this business in 2012 as I thought it was a model I understood and on the back of their involvement with the Olympic park. Unfortunately circumstances prevented me selling out at the post Olympic peak and ever since they have drifted - every possible reason for growth, Energy Prices/Capacity Shortage etc. seems in place - and the price drops....
My impression was one of AGK being able to package generation and adapt to current demands and utilise different energy sources according to customer requirements. This will be crucial to avoid a deadend business. Portable energy has its niche and I doubt that will change. I would love to see a hook up with ITM for instance.
"With a flurry of price-moving announcements, Tuesday's rush of trading updates probably should have come with an investor health warning. It's one of those days where it is hard to know where to look first, with a number of statements followed ..."
So if we have a situation like we are likely to get on some Caribbean Islands after the Hurricane where there are no functioning power stations but there is a need for power, how are the temporary power sources from batteries going to help?
In situations like Olympics, or World Cup or even travelling fairs maybe you're right; but is there any suggestion that Aggreko are not up with technology?
Kodak, who had as their business cornerstone, film. They produced it and made cameras to use it in, whilst ignoring the digital image revolution that happened very quickly. The result was a failed business. So how does this affect Aggreko
Aggreko provide short term electricity provision, via carbon based fuel equipment. Now, if the move away from carbon fuels increases in pace, Aggreko´s equipment becomes obsolete or costly to operate. So where does that leave Aggreko?
In need of battery technology, which is the equivalent of the photography digital age. Pre load them, batteries, from wind/hydro/Tec generated electricity and you help safeguard your business.
So are Aggreko doing this, I don't know as I have not looked into this too far yet, but there is time yet.
"It was in the warm glow of London's successful Olympics Games in 2012 that LSE:AGK:Aggreko confirmed its status as darling of the FTSE 100 Index. Shares in the temporary power generation company were in record-breaking form, in keeping with ..."
Aggreko wins contract to provide power at 2018 Winter Olympics
Jan 4 (Reuters) UK's Aggreko Plc said on Wednesday it had been appointed the official temporary power provider for the 2018 Winter Olympics in Pyeongchang.
The company, which is the world's largest temporary power provider, said it would provide power across 18 competition venues and broadcast centre as part of a contract expected to be valued at around $40 million. ...
Aggreko had earlier pulled out of a tender to supply generators to the Olympic Games in Rio de Janeiro in 2016, after not being awarded the first tranche of contracts. ...
The contract win comes amid a tough period for Aggreko, which said late last year it was reviewing the value of its North American fleet of oil and gas rental generators after further weakness in that market hit its quarterly revenue. ...
Aggreko would be a sponsor for the Pyeongchang Olympics as part of the deal, it said on Wednesday.
Asia's first Winter Olympics outside Japan will see the coastal city of Gangneung host figure skating, curling, ice hockey, speed and short-track skating events, while Pyeongchang, some 180 kilometres east of Seoul, will stage mountain events.
(Reporting by Esha Vaish in Bengaluru; Editing by Amrutha Gayathri) (([email protected]; +44 20 7542 1810; Reuters Messaging: [email protected])
BRIEF Temporary power provider Aggreko wins contract for 2018 Winter Olympics
Jan 4 (Reuters) Aggreko Plc :
Olympic Winter Games Pyeongchang 2018 contract
Appointed official temporary electricity generation provider for Olympic Winter Games Pyeongchang 2018
Value of contract is expected to be around $40 million
As part of agreement, Aggreko will be a sponsor of Olympic games
Source text for Eikon: ... Further company coverage: AGGK.L
Aggreko appointed Official Temporary Electricity Generation Provider for the
Olympic Winter Games PyeongChang 2018
Aggreko plc, the global leader in the rental of power, heating and cooling, is
pleased to announce that it has been awarded a contract to be the Official
Temporary Electricity Generation Provider for the Olympic Winter Games
PyeongChang 2018. It will provide power across 18 competition venues and the
international broadcast centre, ensuring an uninterrupted television broadcast
to millions of viewers throughout the world. The value of the contract is
expected to be around $40 million and as part of the agreement Aggreko will be
a sponsor of the Olympic Games.
Aggreko has a proven track record in supporting high profile events and also
recently announced it would be providing the power for the 2018 Gold Coast
Commonwealth Games in Australia, Australia's largest event for over a decade.
Chris Weston, Chief Executive said: "I am delighted that Aggreko has been
appointed the official power provider for the Olympic Winter Games PyeongChang
2018. We look forward to helping the organising committee deliver another
Investors & Analysts
Louise Bryant, Aggreko plcTom Hull, Aggreko plc +44 7876 478 272+44 7342 056 727
Liz Morley/Sam Cartwright, Bell Pottinger +44 20 3772 2500
Notes to Editors
Around the world, people, businesses and countries are striving for a better
future. A future that needs power and the right conditions to succeed.
That's why Aggreko works around the clock, making sure our customers get the
electricity, heating and cooling they need, whenever they need it - all
powered by a trademarked passion, unrivalled international experience and
local knowledge. From urban development to unique commercial projects and even
humanitarian emergencies, we bring our expertise and equipment to any
location, from the world's busiest cities to some of the most remote places on
Every project is different, so Aggreko listen first and design a system around
our customers, delivering our service and support anywhere, to any scale.
Transforming the lives and livelihoods of individuals, organisations and
communities across the globe.
This information is provided by RNS
The company news service from the London Stock Exchange
I bought a first tranche this morning at 791p. Have had these on my watch list for about 6 years but the high PE, high growth story never really had me convinced.
Things look much more sensible now. I make the current share price around 10Xaverage PE. (I take last 5 years EPS and add in forecast EPS for next 2 years reduced by 10%) to give a 7 year business cycle.
Divi is 3.4% and more than twice covered so hopefully that is safe for the time being.
I'll invest 2 further tranches at 750p and 700p, hold for 5-7 years and see how it goes.
Does anyone else see these becoming better value as we head down in the 700-800p range?
<b>Aggreko provides rental power generators, temperature control equipment and compressed air systems to companies around the world. Its rental equipment includes quiet, gas & diesel generators, load banks, heaters, air conditioners and chiller rentals for planned and emergency projects.</b>
Power provider Aggreko (AGGK) has reported first quarter results including the impact of expected headwinds.
Peel Hunt analyst Andrew Nussey retained his hold recommendation and target price of £10.00 on the shares, which rose 3% to £11. 13 yesterday
No surprises in the trading detail given the well-flagged trading headwinds impacting H1 2016. However, encouraging year-to-date order intake and low off hire rate, he said.
Outlook unchanged with full-year 2016 capital expenditure guidance retained at £250 million. No update on business priorities and proportion accruing to shareholders. We retain our December 2016 profit before tax of £241 million (guidance). Aggreko remains a high quality and well-positioned recovery play, but with the shares trading on 14.7x 2017 earnings per share we see limited upside until greater trading clarity. "
So there is now a 3 year contract to provide 200MW of diesel-fuelled power in Zimbabwe.
A once rich country with thermal coal at Hwague and hydroelectric power at Kariba Dam.
The Chinese failed to resusitate the former because of impossible management. The Dam requires major repairs to its eroded foundations and as that will not happen it is ultimately doomed.
Zimbabwe has been brought to its knees by the despotic ruler Comrade Robert Mugabe age 92 though he blames the UK for all problems.
All businesses have to be at least 51% indigenous owned resulting in poor management.
In fact any successful businesses are de facto controlled by the ruling elite.
The foreign exchange situation is dire so there is a chronic shortage of all types of fuel.
The debt (borrowings) on this one have risen from £111M to £455M in five years and during all that time the pre-tax profit stayed flat at about £310M (£314M in 2010 and £310M) in 2014.
This hefty increase in debt has occurred while the revenue has risen 28% from £122Bn to £1.57Bn. So it's selling a hell of a lot more for a lot less per unit - a 28% drop in average prices in effect.
The dividend has also risen from 6.55p to 9.38p in that time. This is unhealthy in a business that is effectively struggling with such declines in profits (£260M projected). They should at least have slowed the growth in the dividend
The revenue is expected to rise again to the £1.6BN range and yet profits are going to fall again to the £260M level - more price erosion - it's getting very tough.
The P/E of 13 is surely far too high considering a 10% fall in earnings this year and a projected no growth next year.
The cash flow was negative this last year, so the dividend is completely uncovered.
I'd say this was a sell and 500p might be on the cards -- total guess though because anything could happen - it might get bought, the oil industry might experience a resurgence, who knows? But I wouldn't buy at this £10 level, it looks like the downside is unknown and the upside (well is there one?).
You need a chainsaw, then I'm your man!
LG's £10 forecast is coming closer..... but will it drop to her £7 forecast in a month or two..?
I watched APR (similar company) drop from over £10 to £1 before i invested there, so i will not be suprised to see AGK fall further
Waiting in the wings...... chainsaw every ready
The directors are at it again. Throwing a little chaff down to keep us quiet. Surely at this desperate state of the companies finances I would expect to see some all board members waving the flag of confidence for the company! To do this I mean buying at least 50%of their annual wages as SHARES.If they choose not to,but to just live off the company they should be instantly got rid of. I don't want camp followers in my team
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