If you didn’t get any Aggreko shares last month, you now have a slightly better window to buy. Aggreko plc provides power and temperature control solutions to customers who need them either very quickly, or for a short or indeterminate length of time.
Rupert Soames is to step down as Group Chief Executive of Aggreko, after 11 years, to be CEO of Serco Group plc. This announcement affected the share price sending it unexpectedly, and possibly unreasonably, down a pound in share value.
Aggreko has a strong management team and a capable interim CEO in the Chef Finance Officer until Mr Soames replacement.
Mr Soames said: “I have loved every minute of my time with Aggreko. Our customers, the essential nature of our services and above all our people make it an outstanding company, and I am proud to have played a part in its successful growth over the past 11 years. But there comes a time when all CEOs need to move on and now, with a new five-year strategy in place and a solid executive team running the business, that time has come. Aggreko is a great company with great people, and I wish Angus and the team every success.”
The recent final report for Aggreko was steady, and they have made an excellent start to 2014. They have a probable contract in Libya but, because of volatility in that country, they have not included, for now, any benefit in their order book. Aggreko is taking the view that a Libyan contract is ‘icing on the cake’.
We have an early, and tentative, buy signal for Aggreko.