CITY NEWS
ENCOURAGING SIGNS Catherine Stratton assesses the latest results from Aggreko and Ashtead.
AGGREKO: Interim results for the six months ended 30/06/10 30.06.10 30.06.09 (£m)
%Change Revenue Trading Profit
583.6 129.8
Profit before taxation 125.7
499.8 105.8 105.7
(£m) (as reported) +16.7 +22.7 +19.0
ASHTEAD: Results for the first quarter ended 31/07/10 Underlying results
2010 2009 Actual
Revenue EBITDA
+7.7 +9.5
Change at Profit before 11.9
taxation Statutory results
2010 2009 Actual
Profit before 14.0 taxation
Segmental results Revenue
Sunbelt A-Plant Group
EBITDA
Sunbelt A-Plant
Central costs Group
2010 (£m) 67.6 12.3 (1.5) 78.4
2009 (£m) 61.6 11.4 (1.4) 71.6
%Change +9.7 +7.9
+9.5
2010 (£m) 199.4 39.7
239.1
2009 (£m) 179.0 42.6
221.6
%Change +11.1 -6.8 +7.9
+70.7 Change at
(£m) (£m) change% constant rates% 8.2
+56
(£m) (£m) change% constant rates% 239.1 221.6 78.4 71.6 8.8
+2 +3
+35.2 +18
Last month’s City News suggested that the results and trading statements from leading players in the hire industry indicated that prospects were improving, albeit slowly and with the proviso that there were some considerable challenges still to come.
Meanwhile, the results shown here give further reason for optimism. Aggreko, of course, is an exceptional company with its worldwide presence; it continues to perform strongly. The one area of some disappointment is Europe. The accompanying statement says that the fall in revenue here matched the additional revenues generated by the exceptional winter storms in France last year, so that, on an underlying basis, revenues were flat.
Ashtead achieved improved profitability in both the US and the UK in the first quarter, although A-Plant’s revenues continued to decline. The company says this fall reflected 3% growth in the average fleet on hire “with demand for A-Plant’s quality service continuing to result in market share gains”. The statement added “UK yield declined 7% year on year principally due to the full effect of price re-negotiations last autumn with (the company’s) key accounts.” August was said to have continued the pattern of trading seen in the first quarter at both A-Plant and Sunbelt.
In other news, at the company’s AGM, Vp Chairman Jeremy Pilkington told shareholders “the sentiments expressed in the Interim Management Statement announced in August still hold…Vp has experienced stability in its markets and the pattern of demand has been largely as expected.” In late September, Vp also announced that Group Finance Director, Mike Holt, would be leaving in November to join Low & Bonar plc in the same role.
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