aggreko plc/media/files/a/aggreko/respres/2003/interim03/... · aggreko plc. 2003 interim results....

AggrekoAggreko plcplc

2003 INTERIM RESULTS2003 INTERIM RESULTS

AggrekoAggreko plcplc

PhilipPhilip RogersonRogersonChairman Chairman

AggrekoAggreko plcplc2003 Interim Results2003 Interim Results

� Turnover down 5% to £159.3m� Pre-tax profit down 32.6% to £17.2m� Earnings per share down 27.7% at 4.37 pence� Financial position strong� Interim dividend maintained at 2.20 pence� Appointment of new Chief Executive

AggrekoAggreko plcplcFinancial and Operating ReviewFinancial and Operating Review

Angus CockburnAngus CockburnFinance DirectorFinance Director


� Turnover £159.3m - down 1.9% in constant currency

� Operating profit £19.6m - down 29.4% in constant currency

� Operating margin at 12.3% - down 4.8pp

� EBITDA £48.2m - down 14.9%

� Interest cover 8.2 times


2.206.0510.4(5.9)16.3(9.3)25.6(3.1)28.7

167.7

2002

-(27.7%)(43.7%)

-(27.7%)

41.0%(32.6%)

22.5%(31.5%)(5.0%)

Change

2.20Dividend per share (pence)4.37Earnings per share (pence)5.8Retained profit

(5.9)Dividends11.7Profit after tax (5.5)Taxation17.2Profit before tax(2.4)Net interest expense19.6Operating profit

159.3Turnover

20036 MONTH RESULTS (£m)


1.4476

1.6128

US$

5.31681.60642002

5.92351.4564 2003

AED EuroAverage Exchange Rates

(0.8)(5.1)

(0.1)(0.4)International(1.0)(6.8)North America

0.32.1Europe

Operating ProfitImpact

(£m)

TurnoverImpact

(£m)

CURRENCY EFFECT ON RESULTS 2002 v 2003

Aggreko plcAggreko plc2003 Interim Results2003 Interim Results

-0.1Capital redemption reserve

169.4

(6.0)

116.1

5.6

53.7

169.4

(134.0)

(29.3)

(5.9)

43.4

3.8

291.4

June 2002

180.4

(9.9)Translation reserve

130.9Profit & loss reserve

5.7Share premium

53.6Share capital

180.4Net assets

(131.8)Net borrowings

(26.4)Provisions for taxes

(5.9)Dividends payable

41.5Working capital

3.3Intangible assets

299.7Tangible fixed assets

June 2003BALANCE SHEET (£m)


£26.6m£42.1mCapital expenditure

£40.3m£39.7mCash flow from operating activities

9.3 times8.2 timesInterest cover

79% 73%Gearing

June 2002June 2003FINANCIAL POSITION


40.339.7Net cash inflow from operating activities

(2.5)(2.2)Other non-cash movements

(14.0)(6.3)Changes in working capital

28.128.6Depreciation & amortisation

28.719.6Operating profit

20022003CASH FLOW FROM OPERATING ACTIVITIES (£m)


(5.0%)

(23.4%)(31.5%)

2.428.7

1.819.6

Gain on SaleOperating Profit

(32.2%)26.317.8167.7159.3

14.3%10.111.58.3%53.457.9International

(92.9%)7.80.6(25.4%)66.249.3North America

(31.7%)8.45.78.5%48.152.1Europe

Change%

20022003Change%

20022003ANALYSIS (£m)TRADING PROFITTURNOVERSEGMENTAL


10.7pp behind1.1%Trading Margin

92.0% behind$0.9mTrading Profit

16.8% behind$79.6mTurnover

NORTH AMERICA


NORTH AMERICA

� Comparison impacted by $17 million from SLOC in 2002

� Over-supply and pricing pressure in power market continues

� Growth in TC and OFA

� Some early APS success


6.5pp behind11.1%Trading Margin

33.5% behind€8.4mTrading Profit

4.0% ahead€75.9mTurnover

EUROPE


EUROPE

� Business mix change as major utility projects end

� Robust overall depot performance

� Challenging economic conditions in Continental Europe

� New locations in Madrid and Milan

� New management in Central Europe


INTERNATIONALSri Lanka

Fuel AdjustedHeadline

unchanged22.5%1.0pp ahead19.8%Trading Margin

15.5% ahead£11.5m15.5% ahead£11.5mTrading Profit

15.4% ahead£51.0m9.2% ahead£57.9mTurnover


INTERNATIONAL

� High level of activity in Middle East

� New depot opened in Kuwait

� Utility projects in Sri Lanka, Saudi Arabia and West Africa

� Continuing growth in end-user projects

Aggreko plcAggreko plcProgress to Date & OutlookProgress to Date & Outlook

Rupert SoamesRupert SoamesChief ExecutiveChief Executive


� Rupert Soames - background & experience– Oxford graduate, 44 years old– 15 years in GEC

• GEC Avionics• Managing Director, GEC Computers• P D-G GPTélécom SA• Assistant Commercial Director, GEC• Managing Director Avery Berkel UK, responsible for operations in India,

UK, Asia and Africa– 5 years in Misys

• Chief Executive, MKI• Chief Executive, Misys Banking & Securities Division


EIGHT WEEKS INTO THE JOB

Stage One:� Initial tour of business completed

– US, Europe, Middle East, Asia, Australia– Met majority of the senior & middle management, plus a number of

customers� First impressions

� A fundamentally good business, with a business proposition valued by its customers, and differentiated from that of its competitors

� But………opportunities for improvement


Stage Two:� Developing a strategy for the next 3-5 years� Market & competitive environment has changed

– Consensus within the management team that the time is right to have an in-depth review of the market, the opportunities, and priorities for investment

� Strategy Review started early August– Led by executive members of the Board, with teams covering each

of our major businesses– Anticipated to be completed by Q1 2004

Stage Three:� Present to analysts & investors

– Spring 2004


OUTLOOK

� No change from the position as stated in Trading Update dated June 18th

� In the middle of our key summer trading period– Demand remains robust in the Middle East depot business– Some modest improvement in activity levels, arising from recent

European heat wave and N. American power outages

� However, in aggregate, trading is in line with our expectations

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