North American business supports trading profit at Aggreko

FTSE 100-listed temporary power and temperature control provider Aggreko has posted strong performance with trading profit up 13 per cent in the year ended December 31st.

In its final result, the group reported underlying growth in group revenue of 14% to £1.6bn post-exceptional items. Trading profit rose to £388m from £386m a year earlier and profit before tax jumped 11% to £367m.

The company's performance was underpinned by strong regional performance in its North America and International Local Business divisions.

Underlying revenue rose 20% year-on-year to £234m in International Local Business and 16% in North America to $482m.

However, trading margins in Power Projects were 33%, six points lower than in 2011. The group said that this was principally due to increased bad debt provisions, mobilisation costs on a Mozambique contract and a reduction in revenues from Aggreko's US Military contracts.

Underlying trading margins in Local business increased by one point to 17%, which enabled the business to deliver 20% growth in underlying trading profit.

Diluted earnings per share increased by 16% to 100.40p.

Rupert Soames, the Chief Executive Officer of Aggreko, said: "The Local business has had a very strong start to the year, with almost 20% more power on rent than a year ago, helped in part by our acquisition of Poit Energia in April 2012.

"Encouragingly, growth in the Local business has been broadly spread, with most areas other than Europe showing healthy year-on-year increases in MW on hire."

MF