2016 Annual Report Summary

Chief Executive Officer

The work underway across the business is beginning to take effect.

Chris Weston

Chief Executive Officer

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Chris Weston - Chief Executive Officer
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Our Business today

Globally organised to serve our customers’ needs

We are a global company organised into two business units. This enables us to focus on our customers, developing market leading products aimed at reducing the overall cost of power, whilst more efficiently delivering our expertise and equipment across the globe. We operate in around 100 countries through 208 sales and service centres and with around 7,000 permanent and temporary employees.

Map showing our operations throughout the globe.

Key:

Rental Solutions

Power Solutions

Offices/Service centres

Rental Solutions

A transactional business focused on key sectors and operating in developed markets, providing power, and related solutions to a diverse range of customers who need it quickly and typically for a short period of time.

Revenue

£629m

43% of group

Service Centres

128

Power solutions

Operating across key sectors in emerging markets, we typically serve both industrial and utility customers with large, longer-term and often complex solutions to fulfill their power requirements.

Revenue

£826m*

57% of group

Service Centres

76

*excluding pass-through fuel

Supported by a strong infrastructure

Dedicated sales force – Leading technology – Efficient functions – Established distribution network.

What we do

Overview

Performance Highlights

Revenue

£1,515m

2015: £1,561m

Adjusted operating profit2

£248m

2015: £275m

Adjusted profit before tax2

£221m

2015: £252m

Adjusted diluted EPS2

61.95p

2015: 71.68p

Dividend per share1

27.12p

2015: 27.12p

2016 Return on capital employed2

13%

2015: 16%

Revenue (£m)

Revenue figure Year
1515 2016
1561 2015
1577 2014
1573 2013
1583 2012

Adjusted operating profit2

Revenue figure Year
248 2016
275 2015
310 2014
358 2013
385 2012

Adjusted profit before tax2 £M

Revenue figure Year
221 2016
252 2015
289 2014
333 2013
360 2012

Adjusted diluted EPS2 (£m)

Revenue figure Year
61.95 2016
71.68 2015
82.49 2014
92.03 2013
100.40 2012

Dividend per share1 pence

Revenue figure Year
27.12 2016
27.12 2015
27.12 2014
26.30 2013
23.91 2012

Return on capital employed2 %

Revenue figure Year
13 2016
16 2015
19 2014
21 2013
24 2012
  1. The Board is recommending a final dividend of 17.74 pence per Ordinary Share, which, when added to the interim dividend of 9.38 pence, gives a total for the year of 27.12 pence per Ordinary Share.
  2. Adjusted excludes exceptional items in 2016, 2015 and 2012.

Our Strategic Priorities

Achievement in the year

Over 100 workstreams are in place working on initiatives under the strategic priorities.
During the year we have achieved the following:

Customers

Case Study

Implementation of new Customer Relationship Management (CRM) system

Following our extensive customer surveys last year, we identified that whilst we offer a high standard of customer service. It is a ‘one size fits all’ approach which is not appropriate to all of our markets. We are implementing a new CRM system, using SalesForce as a service provider, which allows us to better tailor and personalise the service we provide our customers, and more efficiently delivering the outputs they need.

CRM

Technology

Case Study

Solar-diesel hybrid

In June 2016 we announced the pilot of a solar-diesal hybrid product, which couples modular solar panels with our diesel generators. Solar cannot provide power output 24/7, but combined with our diesel product it becomes an optimal solution for customers with enough land to have a solar array. There are clear environmental benefits to the product, but it also reduces the cost by up to 10% compared to a stand-alone diesel solution.

24/7

Efficiency

Case Study

Rolling out the ROC (Remote Operating Centre)

In 2016, we rolled out remote monitoring across our Rental Solutions fleet after success in North America. The ROC connects all of our equipment on-hire to a central monitoring centre which can track performance, system issues and the need for any maintenance. As a result we've been able to reduce the cost of breakdowns, lower the need for extra equipment needed for back up and improve our customer satisfaction.

ROC

People

Case Study

Development of our Purpose and Values

Over the last twelve months we have looked to evolve our culture and refresh our purpose and values. To do this we’ve consulted with employees at all levels of the organisation, across the world to understand their views. This has shaped a new framework for Aggreko – Always Orange, which was launched in early 2017 and will help to bring together our global employee base.

Values

What we do

Find out how we are delivering on our strategic priorities

Our KPIs

Our Priorities