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International Journal of Marketing & Financial Management, Volume 2, issue 3, April-2014
Page 1
International Journal of
Marketing & Financial
Management (IJMFM)
Volume 2, Issue 3, April-2014
ISSN: 2348 –3954 (Online)
ISSN: 2349 –2546 (Print)
Instructions for authors and subscription
information:
http://www.arseam.com/
A Research Report
on
Financial & Risk Analysis of AGGREKO PLC Company
Shazila Andleeb
Research Student (Student Id: SM13-ES-0001)
Mohammad Ali Jinnah University, Karachi, Pakistan.
Sir Jamil Ahmed,
Instructor,
Mohammad Ali Jinnah University, Karachi, Pakistan
International Journal of Marketing & Financial Management, Volume 2, issue 3, April-2014
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SHAZILA ANDLEEB
s..............................
.....
SM13-ES-0001
SIR JAMIL AHMED
SABRI
AAAAASSABRIAHMSSABRI
JAA................................
..
SUNDAY, 28th
JULY, 2013
Course Title: MSC 102 - Strategic Finance
Assignment Title: Financial & Risk Analysis of
AGGREKO PLC Company
Student Name: SHAZILA ANDLEEB
Student ID:
Instructor:
Submission Date:
Word Count: 5000+ Words except
Appendices
Student Declaration:
International Journal of Marketing & Financial Management, Volume 2, issue 3, April-2014
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This is to certify that the attached work is my own. All external
references and sources are clearly acknowledged and identified
within the contents. I am aware of the University regulations
concerning plagiarism.
Student Signature: ......................................
Date: SUNDAY, 28th JULY, 2013
International Journal of Marketing & Financial Management, Volume 2, issue 3, April-2014
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Marker’s general view of the work:
Mark:
Assessment Criteria Excellen
t good
Satisfactor
y
Needs
some
more
work
Needs
much
more
work
Part 1 30%
Introduction to company. Historical
overview and past strategy. Size, market
share, segmental analysis etc.
Statistical information to include
Financials, share price graph, foreign
sales and markets.
Benchmarking against industry average
and FTSE (or equivalent). Min 5 years
data.
Analysis using charts, graphs.
30%
Part 2 50%
Critical analysis of statistical information
and management of risk.
Foreign exchange risk
Country/political risk/financial
Other risks
WACC and beta etc-30%
International Journal of Marketing & Financial Management, Volume 2, issue 3, April-2014
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Excel spreadsheets-20%
Part 3 10%
Review of future strategy and the impact
on risk assessment-critical appraisal
Presentation (quality) 10%
Logical development & structure
Referencing 10%
-incorporated into Parts 1 & 2
SPECIFIC aspects of your assignment
.... that the marker likes:
SPECIFIC aspects of your assignment
.... that need more work:
Tutor Signature: ...................................... Date: ..................
Moderators Comments
Moderators Signature: .................................. Date: ..................
International Journal of Marketing & Financial Management, Volume 2, issue 3, April-2014
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TABLE OF CONTENT
A Research Report .................................................................................................................................. 1
Financial & Risk Analysis of AGGREKO PLC Company ............................................................. 1
INTRODUCTION OF AGGGREKO PUBLIC LIMITED COMPANY MOTO: ............................ 13
HISTORICAL OVERVIEW : ............................................................................................................. 13
HISTORY MILESTONES: ................................................................................................................. 14
AGGREKO VISION, MISSION AND VALUES : ............................................................................. 14
AGGREKO PLC GROUP STRATEGY : ......................................................................................... 14
MARKET SHARE AND SIZE OF AGGREKO PLC: .......................... Error! Bookmark not defined.
THE MARKET: ....................................................................................... Error! Bookmark not defined.
THE SHARE: .......................................................................................... Error! Bookmark not defined.
THE GROWTH SIZE: ........................................................................... Error! Bookmark not defined.
SEGMENTAL ANALYSIS: ....................................................................... Error! Bookmark not defined.
BUSINESS SEGMENT : ...................................................................... Error! Bookmark not defined.
GEOGRAPHIC SEGMENT: ................................................................ Error! Bookmark not defined.
FIRMS BETA :............................................................................................ Error! Bookmark not defined.
COVARIANCE OF FORMULA : ......................................................... Error! Bookmark not defined.
SLOPE: ..................................................................................................... Error! Bookmark not defined.
COMBINED BETA GRAPH: ............................................................... Error! Bookmark not defined.
SHARE PRICE GRAPH : ......................................................................... Error! Bookmark not defined.
INTERPRETATION OF RATIOS AND INDUSTRIAL NORMS OF THE COMPANY : ..... Error!
Bookmark not defined.
FINANCIAL STRENGTH: .................................................................... Error! Bookmark not defined.
CURRENT RATIO: ................................................................................ Error! Bookmark not defined.
31ST DEC-2012 ..................................................................................... Error! Bookmark not defined.
31ST DEC-2011 ..................................................................................... Error! Bookmark not defined.
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31ST DEC-2010 ..................................................................................... Error! Bookmark not defined.
31ST DEC-2009 ..................................................................................... Error! Bookmark not defined.
31ST DEC-2008 ..................................................................................... Error! Bookmark not defined.
1.12 ........................................................................................................... Error! Bookmark not defined.
1.22 ........................................................................................................... Error! Bookmark not defined.
1.05 ........................................................................................................... Error! Bookmark not defined.
1.16 ........................................................................................................... Error! Bookmark not defined.
0.80 ........................................................................................................... Error! Bookmark not defined.
ASHTEAD GROUP PLC................................................................... Error! Bookmark not defined.
EXPERIAN PLC ................................................................................. Error! Bookmark not defined.
GENERAL ELECTRIC COMPANY ................................................ Error! Bookmark not defined.
JOHN WOOD GROUP PLC ............................................................ Error! Bookmark not defined.
ATLAS COPCO AB ............................................................................ Error! Bookmark not defined.
0.63 ....................................................................................................... Error! Bookmark not defined.
0.87 ....................................................................................................... Error! Bookmark not defined.
1.52 ....................................................................................................... Error! Bookmark not defined.
2.0 ......................................................................................................... Error! Bookmark not defined.
ASHTEAD GROUP PLC................................................................... Error! Bookmark not defined.
EXPERIAN PLC ................................................................................. Error! Bookmark not defined.
GENERAL ELECTRIC COMPANY ................................................ Error! Bookmark not defined.
JOHN WOOD GROUP PLC ............................................................ Error! Bookmark not defined.
ATLAS COPCO AB ............................................................................ Error! Bookmark not defined.
0.78 ....................................................................................................... Error! Bookmark not defined.
0.63 ....................................................................................................... Error! Bookmark not defined.
0.55 ....................................................................................................... Error! Bookmark not defined.
1.19 ....................................................................................................... Error! Bookmark not defined.
1.4 ......................................................................................................... Error! Bookmark not defined.
Ashtead Group plc ........................................................................... Error! Bookmark not defined.
Experian PLC ..................................................................................... Error! Bookmark not defined.
General Electric Company ............................................................ Error! Bookmark not defined.
John Wood Group plc ..................................................................... Error! Bookmark not defined.
Atlas Copco AB.................................................................................. Error! Bookmark not defined.
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0.824 .................................................................................................... Error! Bookmark not defined.
1.10 ....................................................................................................... Error! Bookmark not defined.
1.03 ....................................................................................................... Error! Bookmark not defined.
0.77 ....................................................................................................... Error! Bookmark not defined.
ASHTEAD GROUP PLC................................................................... Error! Bookmark not defined.
0.24 ....................................................................................................... Error! Bookmark not defined.
0.47 ....................................................................................................... Error! Bookmark not defined.
0.76 ....................................................................................................... Error! Bookmark not defined.
0.107 .................................................................................................... Error! Bookmark not defined.
0.97 ....................................................................................................... Error! Bookmark not defined.
EFFICIENCY: ......................................................................................... Error! Bookmark not defined.
Asset Turnover: ..................................................................................... Error! Bookmark not defined.
31ST DEC-2012 ..................................................................................... Error! Bookmark not defined.
31ST DEC-2011 ..................................................................................... Error! Bookmark not defined.
31ST ........................................................................................................... Error! Bookmark not defined.
DEC-2010 ............................................................................................... Error! Bookmark not defined.
31ST DEC- 2009 .................................................................................... Error! Bookmark not defined.
31ST DEC-2008 ..................................................................................... Error! Bookmark not defined.
0.81 ........................................................................................................... Error! Bookmark not defined.
0.88 ........................................................................................................... Error! Bookmark not defined.
0.97 ........................................................................................................... Error! Bookmark not defined.
0.88 ........................................................................................................... Error! Bookmark not defined.
0.97 ........................................................................................................... Error! Bookmark not defined.
ASHTEAD GROUP PLC................................................................... Error! Bookmark not defined.
EXPERIAN PLC ................................................................................. Error! Bookmark not defined.
GENERAL ELECTRIC COMPANY ................................................ Error! Bookmark not defined.
JOHN WOOD GROUP PLC ............................................................ Error! Bookmark not defined.
ATLAS COPCO AB ............................................................................ Error! Bookmark not defined.
0.7 ......................................................................................................... Error! Bookmark not defined.
0.57 ....................................................................................................... Error! Bookmark not defined.
0.50 ....................................................................................................... Error! Bookmark not defined.
0.9 ......................................................................................................... Error! Bookmark not defined.
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1.1 ......................................................................................................... Error! Bookmark not defined.
ASHTEAD GROUP PLC................................................................... Error! Bookmark not defined.
EXPERIAN PLC ................................................................................. Error! Bookmark not defined.
GENERAL ELECTRIC COMPANY ................................................ Error! Bookmark not defined.
JOHN WOOD GROUP PLC ............................................................ Error! Bookmark not defined.
ATLAS COPCO AB ............................................................................ Error! Bookmark not defined.
8.2 ......................................................................................................... Error! Bookmark not defined.
6.90 ....................................................................................................... Error! Bookmark not defined.
1.50 ....................................................................................................... Error! Bookmark not defined.
1.71 ....................................................................................................... Error! Bookmark not defined.
3.8 ......................................................................................................... Error! Bookmark not defined.
Ashtead Group plc ........................................................................... Error! Bookmark not defined.
Experian PLC ..................................................................................... Error! Bookmark not defined.
General Electric Company ............................................................ Error! Bookmark not defined.
John Wood Group plc ..................................................................... Error! Bookmark not defined.
Atlas Copco AB.................................................................................. Error! Bookmark not defined.
388.30 .................................................................................................. Error! Bookmark not defined.
14.37 .................................................................................................... Error! Bookmark not defined.
55.09 .................................................................................................... Error! Bookmark not defined.
144.69 .................................................................................................. Error! Bookmark not defined.
60.99 .................................................................................................... Error! Bookmark not defined.
TOTAL INDUSTRY AVERAGE OF 5 COMPETITORS=132.688m ..... Error! Bookmark not
defined.
PROFITABILITY: ................................................................................... Error! Bookmark not defined.
GROSS MARGIN: .................................................................................. Error! Bookmark not defined.
31-Dec-2012 .......................................................................................... Error! Bookmark not defined.
31-Dec-2011 .......................................................................................... Error! Bookmark not defined.
31-Dec-2010 .......................................................................................... Error! Bookmark not defined.
31-Dec-2009 .......................................................................................... Error! Bookmark not defined.
31-Dec-2008 .......................................................................................... Error! Bookmark not defined.
61.46% ..................................................................................................... Error! Bookmark not defined.
58.69% ..................................................................................................... Error! Bookmark not defined.
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61.16% ..................................................................................................... Error! Bookmark not defined.
61.32% ..................................................................................................... Error! Bookmark not defined.
56.74% ..................................................................................................... Error! Bookmark not defined.
ASHTEAD GROUP PLC................................................................... Error! Bookmark not defined.
94.06% ................................................................................................. Error! Bookmark not defined.
52.56% ................................................................................................. Error! Bookmark not defined.
41% ....................................................................................................... Error! Bookmark not defined.
17.62% ................................................................................................. Error! Bookmark not defined.
38.59% ................................................................................................. Error! Bookmark not defined.
ASHTEAD GROUP PLC................................................................... Error! Bookmark not defined.
23.89% ................................................................................................. Error! Bookmark not defined.
6.90% ................................................................................................... Error! Bookmark not defined.
5.12% ................................................................................................... Error! Bookmark not defined.
21.30% ................................................................................................. Error! Bookmark not defined.
ASHTTEAD GROUP PLC ................................................................ Error! Bookmark not defined.
38.13% ................................................................................................. Error! Bookmark not defined.
15.07% ................................................................................................. Error! Bookmark not defined.
17.5% ................................................................................................... Error! Bookmark not defined.
10.37% ................................................................................................. Error! Bookmark not defined.
23.60% ................................................................................................. Error! Bookmark not defined.
MANAGEMENT EFFECTIVENESS: ................................................ Error! Bookmark not defined.
INTERPRETATION: .............................................................................. Error! Bookmark not defined.
JOHN WOOD GROUP PLC ............................................................ Error! Bookmark not defined.
8.56% ................................................................................................... Error! Bookmark not defined.
3.00% ................................................................................................... Error! Bookmark not defined.
3.8% ...................................................................................................... Error! Bookmark not defined.
5.88% ................................................................................................... Error! Bookmark not defined.
13.95% ................................................................................................. Error! Bookmark not defined.
INTERPRETATION: .............................................................................. Error! Bookmark not defined.
GENERAL ELECTRIC COMPANY ................................................ Error! Bookmark not defined.
22.44% ................................................................................................. Error! Bookmark not defined.
8.23% ................................................................................................... Error! Bookmark not defined.
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9.08% ................................................................................................... Error! Bookmark not defined.
11.22% ................................................................................................. Error! Bookmark not defined.
41.00% ................................................................................................. Error! Bookmark not defined.
VALUATION: .......................................................................................... Error! Bookmark not defined.
FREE CASH FLOW/SHARE: ............................................................ Error! Bookmark not defined.
31ST ........................................................................................................... Error! Bookmark not defined.
DEC-2012 ............................................................................................... Error! Bookmark not defined.
31ST DEC-2011 ..................................................................................... Error! Bookmark not defined.
31ST ........................................................................................................... Error! Bookmark not defined.
DEC-2010 ............................................................................................... Error! Bookmark not defined.
31ST ........................................................................................................... Error! Bookmark not defined.
DEC-2009 ............................................................................................... Error! Bookmark not defined.
31ST ........................................................................................................... Error! Bookmark not defined.
DEC-2008 ............................................................................................... Error! Bookmark not defined.
-0.25 ......................................................................................................... Error! Bookmark not defined.
-0.06 ......................................................................................................... Error! Bookmark not defined.
0.46 ........................................................................................................... Error! Bookmark not defined.
0.80 ........................................................................................................... Error! Bookmark not defined.
-0.11 ......................................................................................................... Error! Bookmark not defined.
-19 ......................................................................................................... Error! Bookmark not defined.
12.64 .................................................................................................... Error! Bookmark not defined.
66.8 ....................................................................................................... Error! Bookmark not defined.
14.01 .................................................................................................... Error! Bookmark not defined.
15.02 .................................................................................................... Error! Bookmark not defined.
30........................................................................................................... Error! Bookmark not defined.
25.02 .................................................................................................... Error! Bookmark not defined.
12.20 .................................................................................................... Error! Bookmark not defined.
95.38 .................................................................................................... Error! Bookmark not defined.
29.08 .................................................................................................... Error! Bookmark not defined.
RISK 1: ......................................................................................................... Error! Bookmark not defined.
PRINCIPAL RISKS AND UNCERTAINTIES: ...................................... Error! Bookmark not defined.
RISK 2: ......................................................................................................... Error! Bookmark not defined.
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RISK 3: ......................................................................................................... Error! Bookmark not defined.
RISK MANAGEMENT: ............................................................................. Error! Bookmark not defined.
RISK 4: ......................................................................................................... Error! Bookmark not defined.
CORPORATE GOVERNANCE: .............................................................. Error! Bookmark not defined.
FUTURE REVIEW AND FORECASTS OF THE MARKET 2017: Error! Bookmark not defined.
RENTAL POWER MARKET RESEARCH: .......................................... Error! Bookmark not defined.
CONCLUSION / RECOMMENDATION: ............................................. Error! Bookmark not defined.
REFERENCES: .......................................................................................... Error! Bookmark not defined.
Dallas , TX (PRWEB) August o7 ,2012 from rental power forecasts (Accessed Date :
17th june, 2013 ) ....................................................................................... Error! Bookmark not defined.
Picture from www.aggreko.com and from powerful viewers.zmags.com publication (
Accessed Date : 17th june,2013 )......................................................... Error! Bookmark not defined.
aggreko.com. 2013. aggreko plc. [online] Available at:
http://viewer.zmags.com/publication/8d77e0f8#/8d77e0f8/1 [Accessed: 22 Jul
2013]. ........................................................................................................... Error! Bookmark not defined.
investing.uk. 2013. businessweek. [online] Available at:
http://investing.businessweek.com/research/stocks/financials/ratios.asp?ticker=AH
T:LN [Accessed: 26th Jul 2013]. ......................................................... Error! Bookmark not defined.
the telegraph. 2013. market. [online] Available at:
http://shares.telegraph.co.uk/fundamentals/?section=financials&epic=WG.
[Accessed: 26 July 2013 ........................................................................ Error! Bookmark not defined.
EXPGY KEY STATISTICS. 2013. marketwatch. [online] Available at:
http://www.marketwatch.com/investing/stock/expgy/profile [Accessed: 26th july
2013]. ........................................................................................................... Error! Bookmark not defined.
http://investing.businessweek.com/research/stocks/financials/ratios.asp?ticker=AH
T:LN [Accessed: 22 Jul 2013]............................................................... Error! Bookmark not defined.
businessweek bloomberg. 2013. Untitled. [online] Available at:
http://investing.businessweek.com/research/stocks/financials/ratios.asp?ticker=AH
T:LN [Accessed: 22 Jul 2013]............................................................... Error! Bookmark not defined.
google search. 2013. 1. [online] Available at:
http://www.investorwords.com/5849/WACC.html#ixzz2ZnvvFkim ( [Accessed: 22 Jul
2013]. ........................................................................................................... Error! Bookmark not defined.
graphs. 2013. financials. [online] Available at:
http://shares.telegraph.co.uk/fundamentals/?section=financials&epic=WG.
[Accessed: 22 Jul 2013]. ........................................................................ Error! Bookmark not defined.
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viewer.zmags.com. 2013. zmag. [online] Available at:
http://viewer.zmags.com/publication/8d77e0f8#/8d77e0f8/1 [Accessed: 2nd June
2013]. ........................................................................................................... Error! Bookmark not defined.
APPENDICES / ANNEXES: ................................................................... Error! Bookmark not defined.
APPENDEX A ......................................................................................... Error! Bookmark not defined.
APPENDIX B: ............................................................................................. Error! Bookmark not defined.
APPENDIX C: ......................................................................................... Error! Bookmark not defined.
INTRODUCTION OF AGGGREKO PUBLIC LIMITED
COMPANY MOTO:
Aggreko public limited company is in the rental business for power generator,
as a leader at market place for power generation and controlling temperature.
It has its unique location for the networking of technical equipment and
services. Provides 24/7 services over 148 networking centers in more than 100
countries with an inspirational level of confidence in customer based services
world over and build up relationship with its loyal customers and maintain
data base management system for consumer based plans , also creates new
innovation or invention at marketplace . Aggreko plc win the award for being
the best rental power company of the year in Europe. Different environmental
conditions effects equipment and other concerned systems.
HISTORICAL OVERVIEW :
Aggreko plc came into being in 1962 in the country of Netherlands and
completed its 50 years of success in working at marketplace for 39 countries
International Journal of Marketing & Financial Management, Volume 2, issue 3, April-2014
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.The company is totally commited to provide environmental stability all around
the world and increasing customers data base . Prestigious client of Aggreko
plc includes film being blockbuster named as “ TITANIC ” and also to other
industry related to movies . It’s generator powering plant is also used in “
Olympics Games ” because it is one of the leader in the international world
market as a utility company.
HISTORY MILESTONES:
1962 : company founded year
1973 : established business in UK
1984: expand the business
1990: first business in Middle East
1999: registered on LSE (London Stock Exchange)
2007: contract signed in Yemen
2008: Olympic launching in China
2009: Oman contract
2010: Power support in Bangladesh and FIFA World Cup in Africa
2011: Hire generators in New Zealand
2012: Provides generators to London Olympics more than 600
AGGREKO VISION, MISSION AND VALUES :
“To be the leading global player in the specialist energy at marketplace” and
the mission is “To offer specialist in energy solutions that are delivered by our
high-quality people in such a way that we continually grow global list of
satisfied long-term customers,” Aggreko plc is creating innovation in
temperature and power generation plants in many countries around the world
and that is constant at marketplace for leadership based on global
environmental conditions.
AGGREKO PLC GROUP STRATEGY : Aggreko plc strategy is to categorize its long planned based decision base on
share holder value, services to client, power generating and the control of
International Journal of Marketing & Financial Management, Volume 2, issue 3, April-2014
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generators temporarily as a leader at marketplace globally. Founded the
strategy of being a global leader all around the world, it establishes customer
based service centers in each home country of their businesses which control
power and temperature temporarily. In the field of marketing there is
competitive advantage of being a literal global building business. The
continuous trading resulted into the evidence for global strategic success
approach around the world.