Aggreko ends decade-long growth with profits fall

Temporary power specialist Aggreko has reported an 8% fall in pre-tax profits to £333m in 2013 after a “challenging” year ended almost a decade of growth.

Group revenues were flat at £1.57bn while group trading profits were down 8% year-on-year to £352m. Group trading margin was 22%.

Aggreko chairman Ken Hanna said the performance was “creditable”.

Revenues from military work in Afghanistan were lower than the prior year, as was post-Fukushima reconstruction revenue from Japan. Aggreko said power projects trading had been subdued and also hit profits.

Hanna said: "After nine consecutive years of growth, 2013 proved to be a challenging year; despite this Aggreko delivered a creditable performance and good progress on many fronts. Our local business delivered underlying revenue growth of 7% and margins strengthened; trading in our Power Projects business was, however, more challenging, with underlying revenue at similar levels to last year and margins a little lower.”

Aggreko revealed plans to return £200m of cash to shareholders as well as increase its dividend by 10%.