In line with steps taken to preserve the Group's cash position through the COVID-19 pandemic, the Aggreko Board withdrew its recommendation to pay the 2019 final dividend at its AGM in April 2020 and will not be revisiting this decision. The Board is proposing a final dividend for 2020 of 10.00 pence (2019: nil). This will result in a full year dividend of 15.00 pence (2019: interim dividend of 9.38 pence) per Ordinary Share, giving dividend cover (basic EPS pre-exceptional items divided by the full year proposed dividend) of 1.5 times. This dividend proposal reflects the Board's confidence in the outlook for the business, together with the Group's strong cash flow performance and financial position. Retained earnings of the Company as at 31 December 2020 were £387 million and the majority of these earnings are distributable.
Other financial highlights include:
Group revenue for the year was £1,365 million (2019: £1,613 million)
Underlying revenue down 14% driven by the impact of COVID-19 and the lower oil price
Underlying operating profit down 40% and an underlying decrease in operating margin of 4.4pp
Underlying profit before tax of £102 million, slightly ahead of our initial guidance of £80-100 million
Strong operating cash inflow of £521 million, with a working capital inflow of £170 million reflecting good cash collections
Continued capital expenditure discipline resulted in fleet capex of £186 million (2019: £189 million)
Group ROCE of 7.5% reflects the decrease in operating profit, partially offset by a reduction in net operating assets driven by working capital gains, investment discipline and the exceptional impairment
Strong liquidity and cash position, with a reduction in the net debt over the year of £204 million, and closing net debt to EBITDA of 0.9 times (2019: 1.0 times)
