REG - Aggreko PLC - New Global Management Structure

Thu Sep 13, 2012 10:00am EDT

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RNS Number : 2250M
Aggreko PLC
13 September 2012
 



 

 

13 September 2012

 

Aggreko announces new global management structure

 

Aggreko plc, the world's leading supplier of temporary power and temperature control, today announces the creation of a new global management structure, which will provide the operational foundation to support future growth and rebalance divisional responsibilities. 

 

The Group intends to create three regional units, which will operate all of the Group's business in those geographies. The units will be:

 

·      The Americas

·      Europe, the Middle East and Africa (EMEA)

·      Asia, Pacific and Australia (APAC)

 

The change to the Group structure will become effective on 1st January 2013 and will be reflected in the Group's financial reporting from the 2013 financial year onwards.  A pro-forma statement of the revenues of each of these units for 2011, split between International Power Projects and Local businesses, is shown at the end of this announcement.

 

There are a number of benefits which will flow from the new structure.  First, it will create a more balanced Group organisation, with each of the units accounting for 30-40% of Group trading profit.  Second, it will create three units which combine large Local businesses with strong International Power Projects businesses; as we have proven many times, managing these businesses together creates competitive advantage and synergies, since they share customers, fleet, people and infrastructure. Third, it will create businesses which are of sufficient scale to be efficient, but which are easier to manage as they will be operating in the same time zone.  In short, the new structure will be a robust and sustainable platform capable of supporting the growth that we believe the business is capable of delivering in the years ahead.

 

As is the case in our current structure, each regional unit will be headed by a Main Board Director of Aggreko plc.  We have already identified strong and experienced internal candidates to run both the Americas and the Asia, Pacific and Australia units. Asterios Satrazemis, currently managing our Australia Pacific business, will return to the US, where he was previously responsible for the Northern Business Unit, to manage the Americas business; Debajit Das, who is currently managing our Asia business, will add the Australia Pacific business to his existing responsibilities. These appointments will become effective on 1 January 2013, at which point both Asterios and Debajit will join the Board of Aggreko plc.  In order to strengthen our senior management team further, we intend to recruit an external candidate to run the new EMEA business.

 

It is not anticipated that there will be any material re-structuring costs as a result of this re-organisation; however, the managing director positions running Aggreko International, Europe & Middle East, and North America, will become redundant.  In terms of individuals, George Walker will continue to run the US operations until the end of the year; he will then step down from the Board and take on responsibility for Group Sales & Marketing, in which capacity he will remain on the Group Executive Committee.  Kash Pandya will continue to serve on the Board and run Aggreko International until the end of the year, and will then support the transition to the new operational structure in the first half of 2013; he will leave Aggreko in the second half of 2013.  Bill Caplan will be focussing his efforts on our Olympics business and a number of business development initiatives; he too will assist with the transition to the new structure and will leave the company in 2013.

 

Rupert Soames, Group Chief Executive, said: "This new structure will give Aggreko the balance and focus it needs to continue to deliver growth. I would like to congratulate Debajit, Asterios and George on their appointments, and to thank Kash and Bill for their tremendous efforts on behalf of the Group over the last five years."

 

Aggreko is hosting a visit for analysts to our Dumbarton manufacturing facility on Friday 14 September, starting at 10.30 am.  Trading remains in line with the Outlook statement released at the time of our Interim Results on 2 August 2012 and no further information on trading will be disclosed at this event.

 

- ENDS -

 

Enquiries to:

 

Rupert Soames / Angus Cockburn

Aggreko plc

Tel. 0141 225 5900

 

Neil Bennett / Tom Eckersley

Maitland

Tel:  020 7379 5151

 



 

 

Pro-forma revenue by new region

Year ended 31/12/11


£'m

Americas


Local business

314

International Power Projects

220

Total

534



Europe, the Middle East and Africa


Local business

309

International Power Projects

170

Pass-through fuel

108

Total

587



Asia, Pacific and Australia


Local business

111

International Power Projects

164

Total

275



Group


Local business

734

International Power Projects

554

Pass-through fuel

108

Total

1,396

 


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