Aggreko Share Discussion Threads

[zyzzyva] 07/3/2014 14:28

"I don't think that Aggreko would be paying an "Additional return to shareholders" of GBP200 million worth around 75p/share on top of increasing the final dividend by 10% if things were not looking up here,"

the reason they can do this is because the business is ex growth, so they are not needing to invest in any new equipment

[zyzzyva] 07/3/2014 14:09

he must have decided that they had won all the big contracts they could do, too much of a hard slog from now on

[bountyhunter] 07/3/2014 14:00

...for last year's revenues to match 2012 was quite an achievement given the effect of the London Olympics in 2012 and nothing comparable in 2013; 2014 of course may be even better than either given that Aggreko has already supplied power in Sochi this year and will also be the Official Temporary Power Generator of the 2014 FIFA World Cup!

[zyzzyva] 07/3/2014 13:51

flat revenues, falling profits, and CEO has jumped ship to run a smaller company - that's enough for me this one is over priced

[bountyhunter] 07/3/2014 13:33

...what specifically in the accounts?

I don't think that Aggreko would be paying an "Additional return to shareholders" of GBP200 million worth around 75p/share on top of increasing the final dividend by 10% if things were not looking up here, not to mention the additional revenue to be gained from the World Cup contract this year.

[zyzzyva] 06/3/2014 22:41

RS is a very smart guy. he has jumped ship - gone to Serco. he must have decided there is no growth left here and much better opportunity to turn around Serco.

My bet is Serco will be in the FTSE 100 within 3 years and this one will be back in the 250. imo that's where it deserves if you look at the accounts.

[kavnish] 06/3/2014 19:09

Guys it's very simple when growth is flat in a rental business you throw of a lot of cash , it's called working capital.

There are very few co's in this game it's a long term upward trend what can I say.

They don't need to find new mkts people need power

[zcaprd7] 06/3/2014 15:45

How odd. £14 target will have to wait until ex dividend I guess...

[apad] 06/3/2014 10:39

Interesting how in a tough year the cash flow figures improve so much - and this is part of their business model.
The finance director is stepping into the CEO's shoes - I reckon he ought to stay there.
PER, Price/CashFlow and Price/OwnersEarnings are modest.
The 7% price rise this morning is justified.
AGK is a difficult company to compete against - I think I might reinvest the B shares.
Mr. Market seems to like this share when there are mega events and dislike them when there are no one-offs.
I guess they will become out of favour when the special dividend is paid so it might be better to sell prior and then buy back in the aftermath.
Does anyone have a view on the best strategy (I didn't call it well last time)?
apad

[bountyhunter] 06/3/2014 09:49

Here's the timetable for the final dividend... (I'll add to the header)

"Directors are proposing a final dividend in respect of the financial year ended 31 December 2013 of 17.19 pence per share which will absorb an estimated GBP46 million of shareholders' funds. It will be paid on 27 May 2014 to shareholders who are on the register of members on 25 April 2014."

[bountyhunter] 06/3/2014 09:45

...added the good news re dividends to the header, which I would rather receive than have to pay :-)
With the World Cup coming up I for one will be holding here.

[zyzzyva] 06/3/2014 09:41

looks like an interesting opportunity to short if you are into that sort of thing

[bountyhunter] 06/3/2014 09:41

Dividends

If the proposed final dividend of 17.19 pence is approved by shareholders, it will result in a full year dividend of 26.30 pence (2012: 23.91 pence) per ordinary share, giving dividend cover (Basic EPS divided by full year declared dividend) of 3.5 times (2012: 4.2 times) and is consistent with our strategy of reducing our dividend cover towards 3 times over time.

Additional return to shareholders

With the strong cash generation seen during the year, our net debt at the end of 2013 has fallen to GBP363 million which is 0.6 times our 2013 EBITDA of GBP636 million; accordingly the Board believes that it is appropriate to supplement the ordinary dividend with an additional return to shareholders of approximately GBP200 million, which would result in adjusted net debt at the end of 2013 being GBP563 million or 0.9 times 2013 EBITDA. Subject to shareholder approval, each shareholder will receive a return of value of 75 pence in respect of each existing ordinary share they hold on 27 May 2014.

As was the case in our previous return of value in 2011, when shareholders received GBP149 million (55 pence per share), the return will be made by way of a B share scheme, which will give shareholders a choice as to when, and in what form, they receive their proceeds from the return of value. Notably, it should allow most individual UK taxpayers to receive the return in the form of a capital receipt, if they so wish. The B share scheme will be accompanied by a share consolidation designed to maintain comparability of share price and return per share of the ordinary shares before and after the creation of the B shares.

A circular will be sent to shareholders setting out the details of these proposals later in March.

[bountyhunter] 06/3/2014 09:34

Shares of Aggreko PLC jumped 7.1% after the temporary-power provider said it will return 200 million pounds ($333.76 million) to shareholders and raised its dividend by 10% after cutting debt.

[zyzzyva] 06/3/2014 09:26

looks like a bribe to ensure CEO can transition safely without any embarrassments. but that's £200 mill less capital for growth. the overall story appears to be one of ex growth. a highly regarded CEO unable to get any growth for 3 years running, how will the next guy do? what is the PE ratio?

[pottsypotts] 06/3/2014 09:26

Strong cash generation resulted in a GBP230m reduction in net debt and net debt : EBITDA of 0.6 times;

-- Substantial increase in returns to shareholders;
o GBP200m return of capital in June 2014, equivalent to 75p per share;

o Dividend up 10% with full year dividend of 26.30p per share;

[deanowls] 06/3/2014 09:19

Are you getting how much cash they have generated?

[deanowls] 06/3/2014 08:21

Crackling results, agk always play it safe as seen with the Libya contract, good rise in divi, special payout which I don't know how these things work but wouldn't shorters have to stump that up to the real owners which should force them to close.

Good returns of capital flagged at current growth rates with more capital tied up if they are in a growing market, win win situations.

[tompion] 06/3/2014 07:19

Results look in line, or slightly better than expectations, in my view. Substantial special dividend to shareholders should help shares. Hopefully market will be reasonably re-assured by these result although no growth expected this year. I would hope the shares would rise by about 10p but what do I know.

[bountyhunter] 04/3/2014 17:24

Aggreko Will be the Official Temporary Power Generator of the 2014 FIFA World Cup Brazil

RIO DE JANEIRO, March 4, 2014 /PRNewswire/ --

"Following Aggreko's successful delivery of temporary power at the 2010 FIFA World Cup™ in South Africa, Aggreko has once again been selected to be the Official Temporary Power Generator of the 2014 FIFA World Cup™, which will take place in Brazil. The company has signed an agreement to provide temporary power for broadcasting of all matches in each of the 12 host cities. In addition, Aggreko will provide power and temperature control services for the International Broadcast Centre (IBC), which will be installed at Riocentro, Rio de Janeiro.

Aggreko will provide the power required for the broadcasting (television, radio, internet and press media) of all 64 matches of the competition, which will be watched by more than three billion people around the world; Aggreko will also power the electronic advertising boards around the pitch. The contract will encompass the supply, installation and operation of over 46 megawatts of generating capacity, 1,000 distribution panels and 200 km of electric cables..."

[zcaprd7] 01/3/2014 12:58

Been waiting for £14 to buy for ages!

[tompion] 28/2/2014 17:51

UBS sold its large stake on 26th - what a co-incidence that Rupert Soames announces stepping down two days later!

[sanks] 28/2/2014 16:13

Sheila told me its ok to have a dabble at £8.97