Aggreko Plc (LON:AGK) told investors it continues to expects 2020 trading “in line with expectations” but noted that it is closely monitoring the potential impacts of the coronavirus ahead of the Tokyo Olympics and Paralympics.
The temporary power and generator hire firm - which among other operations specialises in large events like the Olympics, the Superbowl, and the Ryder Cup – said its preparations for the Tokyo 2020 Olympic and Paralympic Games are progressing well.
In its outlook statement, Aggreko noted that the underlying performance during 2019 has provided good momentum into 2020.
Aggreko is proposing a 3% increase in its final dividend, to 18.3p per share, to grow its full year dividend by 2% to 27.7p.
Group revenue reduced by 8% to £1.61bn, though operating profit improved by 10% to £241mln from £219mln in 2018 and operating margin improved by 2.4 basis points to 14.9%.
Pre-tax profit for the year amounted to £199mln, up 9% from £182mln in the preceding twelve months. Operating cashflow improved to £628mln from £423mln.
"Our 2019 results demonstrate the significant progress we have made to improve the group's financial performance,” said Chris Weston, Aggreko chief executive.
“We delivered underlying profit growth of 13%, driven by a strong performance in rental solutions, and a significant working capital improvement. We are proposing a 3% increase in the final dividend, reflecting the board's confidence in the sustainability of our performance.”