Nothing Temporary About Aggreko
April 16th, 2009
Temporary power group Aggreko (AGK) have always had a fairly resilient business model and as such have been a popular target for defensive minded investors, but today’s ahead-of-expectations Q1 results came as a very pleasant surprise
Aggreko (AGK) reported a 42% rise in Q1 revenues, boosted by its international division, and also forecast that full-year trading will be at similar levels to 2008, on a constant currency basis. Even better, the group pointed out that if the sterling - USD rate stays at current levels, reported results will however show substantial growth over 2008. Although group net debt at the end of Q1 increased by GBP94m to GBP327m million, with total facilities of GBP568m and GBP195m of refinancing & replacement of facilities recently completed, the group has ample headroom to finance its needs.
Analyst consensus opinion says the results are ‘better-than-expected’ and the interim statement is ’strong’. This is a highly rated company, and the strong interim performance and forecast puts the shares into the ‘compelling long play’ category. I am a buyer here, with a short term target price of 575p
Blue Index :|
April 16th, 2009
Temporary power group Aggreko (AGK) have always had a fairly resilient business model and as such have been a popular target for defensive minded investors, but today’s ahead-of-expectations Q1 results came as a very pleasant surprise
Aggreko (AGK) reported a 42% rise in Q1 revenues, boosted by its international division, and also forecast that full-year trading will be at similar levels to 2008, on a constant currency basis. Even better, the group pointed out that if the sterling - USD rate stays at current levels, reported results will however show substantial growth over 2008. Although group net debt at the end of Q1 increased by GBP94m to GBP327m million, with total facilities of GBP568m and GBP195m of refinancing & replacement of facilities recently completed, the group has ample headroom to finance its needs.
Analyst consensus opinion says the results are ‘better-than-expected’ and the interim statement is ’strong’. This is a highly rated company, and the strong interim performance and forecast puts the shares into the ‘compelling long play’ category. I am a buyer here, with a short term target price of 575p
Blue Index :|