- Power generations equipment supplier Aggreko reported a rise in profit as cost cuts boosted margins offseting a fall in revenue.

For 2019, pre-tax profit 9% to £199m on-year, while revenue was down 8%, with rental solutions up 1%, power solutions industrial up 3% and power solutions utility down 33%.

The weakness in power solutions utility was blamed on off-hires in Africa and Myanmar, but the business saw underlying operating margin grow 2.9% to 13.3% as a result of the ongoing cost reduction programme.

The operating margin increased 2.4% to 14.9% amid an ongoing focus on cost efficiency and pricing discipline throughout the business, along with the benefit of the cost reduction programme in its power solutions utility business, the company said.

The final dividend was up 3% to 18.3p

The company said it expected to deliver results in line with expectations despite the threat the coronavirus posed to the upcoming Tokyo 2020 Olympic and Paralympic Games.

'Our underlying performance during 2019 provides good momentum into 2020 and our preparations for the Tokyo 2020 Olympic and Paralympic Games are progressing well. Notwithstanding this, we are monitoring closely the development and potential impact of the coronavirus outbreak, both in terms of the Tokyo Olympics and the group more widely. At this point, however, we currently expect to deliver results in-line with expectations for 2020,' Aggreko said.

We expect to make further progress on working capital and will continue our capital expenditure discipline with expected fleet capital expenditure of around £200-to-£250m. This, combined with our performance outlook, underpins our confidence in delivering our mid-teens ROCE target this year and beyond, and we look forward to providing an update on our strategic priorities alongside our interim results in August,' it added.

At 8:09am: [LON:AGK] Aggreko PLC share price was +42.8p at 717.6p

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