Aggreko ups investment after strong start to 2012

Aggreko is to spend £350 million on expanding its power rental fleet in 2012 - £30 million more than previously announced - after posting yet another set of good financial results and in expectation of "strong growth" in the first half of this year.

The company saw its underlying revenues for the year to 31 December 2011 grow by 22% to £1396 million with trading profits up 26% to £341 million. Its international power projects (IPP) business grew by 25%, with 1200 MW of new projects won, and there was significant growth too in its local businesses worldwide.

Rupert Soames, Aggreko's chief executive, said the business had made a strong start to 2012 with accelerated growth rates in both its IPP and local businesses. "We are confident that the business will deliver strong growth in the first half of 2012; at this early stage of the year, we are more cautious about the second half of 2012, when, in any case, comparatives will be tougher", said Mr Soames, "Overall we continue to believe that we will deliver another year of good growth in 2012."

The local business in North America grew partly because of success in renting to the oil and gas sector and worldwide as a result of an increase depot footprint, with 19 new locations opened in 2011 (including four through the acquisition of a business in New Zealand.)

Aggreko said the expansion of its international local business would continue in 2012, with plans to open 20 new depots.

Aggreko's chairman, Philip Rogerson, said the business was trading "well ahead" of its five year plan released in 2007, with compound annual growth of 19% in revenue and 26% in operating profit.

"We believe that our strategies for both the Local and International Power Projects businesses are working well, and that our performance in 2012 will allow us to report that the targets we set in 2007 have been significantly exceeded", said Mr Rogerson.

Meanwhile, Mr Rogerson will step down as chairman of Aggreko at the AGM in April, as previously announced. He has spent 10 years in the post and 15 on the board. He will be succeeded by Ken Hanna, who joined the board in October 2010. Mr Hanna is chairman of Inchcape plc and a non-executive director of Tesco.