Aggreko cheered investors yesterday with a pledge to return £200million to shareholders.
It also raised their full-year dividend by 10% as it delivered its 2013 results.
But the temporary-power firm – which works behind the scenes at major events such as Glastonbury, US presidential inaugurations, football World Cups and the Olympic Games – was unable to report on a better profits performance last year.
Pre-tax profits fell to £338million, from £365million in 2012, although they were slightly ahead of analyst forecasts for £333.76million.
The results come as the FTSE 100-listed Scottish firm starts the hunt for a new chief executive following last week’s announcement that Rupert Soames, a grandson of former prime minister Winston Churchill, is to take over at Serco.
Mr Soames will leave Aggreko after its annual meeting on April 24.
The Glasgow company was among the biggest gainers in the Footsie yesterday as the market digested the news on the dividend and shareholder return, which was justified by “strong cash generation” in 2013.
Net debt at the end of the year was £363million, compared with £593million at December 31, 2012.
Aggreko, which has just been signed up to provide power at this year’s Fifa World Cup in Brazil, forecast trading profits this year to be similar to a “challenging” 2013.
Chief financial officer Angus Cockburn said: “Against a number of headwinds, we were able to deliver a creditable performance.
“Overall, the business has performed in line with our expectations.”
The company said profits were down in 2013 because of the impact of lower revenues from military work in Afghanistan and post-Fukushima reconstruction in Japan, as well as the absence of revenues from the 2012 London Olympics – a contract worth £60million.
Aggreko’s fall in profits ends a run of nine consecutive years of growth.
Underlying group revenue was up by 4% at £1.57billion from global activities including the supply of power to parts of the world where there is no permanent supply, including disaster zones.