Emerging markets power Aggreko
Shares in Aggreko shot up 10 per cent yesterday when the generators giant said soaring demand in India, Africa and other emerging markets would help it to enjoy double-digit growth over the next five years.
In 2012, when Aggreko earned almost £60m supplying generators to power the London Olympics, pre-tax profit rose 11 per cent to £367m off revenues of £1.6bn.
There were fears about its outlook, as the world's biggest temporary power provider issued two profit warnings late last year, warning that fewer United States troops in Afghanistan, generators being packed up in Japan as it recovers from its 2011 earthquake, and the lack of a summer Olympics would combine to take £100m off 2013 revenues. But it covers electricity shortfalls as well as major sporting events, and said business is still booming in emerging markets.
Aggreko's new contracts this year include the Caribbean and Djibouti, and the conclusions of the business review, which the firm carries out every five years, saw it predict double-digit growth in revenues and trading profit each year between now and 2018.
Aggreko also said it expects "to be able to increase significantly cash returns to shareholders over the next five years". That, said the chief executive, Rupert Soames, "is better than a slap in the face with a wet fish".
He added that the FTSE 100 company was seeing "burgeoning demand in emerging markets where there are inadequate power supplies. Our local business division is 20 per cent ahead on a year ago, with a lot of work in South America, India, Asia, and Africa."
It hikes its dividend 15 per cent to 23.9p. The shares rose 181p to 1,939p.
- 1 Finland schools: Subjects scrapped and replaced with 'topics' as country reforms its education system
- 2 The West has it totally wrong on Lee Kuan Yew
- 3 #FreeTheNipple: Women in Iceland bare breasts in solidarity with trolled student
- 4 Scientists have discovered a simple way to cook rice that dramatically cuts the calories
- 5 Zayn Malik quits One Direction: Hundreds of workers request compassionate leave following band member's exit
Germanwings captain Patrick Sondenheimer tried to break into locked cockpit door 'with an axe' as plane was descending
Amanda Knox murder conviction: Italian court overturns verdict for US student and Raffaele Sollecito in the killing of Meredith Kercher
Saudi Arabia says it won't rule out building nuclear weapons
The battle for the Middle East's future begins in Yemen as Saudi Arabia jumps into the abyss
#FreeTheNipple: Women in Iceland bare breasts in solidarity with trolled student
Nigel Farage brands LGBT activists 'filth' and 'scum' and accuses them of scaring away his children after they invade his local pub
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Russia threatens Denmark with nuclear weapons if it tries to join Nato defence shield
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Germanwings plane crash live: Co-pilot Andreas Lubitz wanted to 'do something people would remember him for'
iJobs Money & Business
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...
£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...