Aggreko boosts earnings after Olympic contract helps growth

 
City A.M. Reporter
AGGREKO, the temporary power provider for the London 2012 Olympics, yesterday posted a 23 per cent rise in trading profit for the first half, beating its expectations, and said it would deliver good growth for the full year.

The world’s number one temporary power provider reported underlying trading profit of £159m on revenue of £734m, up 16 per cent on the same basis.

The company said yesterday it had made a successful start to the London Olympics, with over 550 generators and 1,500 kilometres of cable deployed on 44 sites in a contract worth around £55m.

“It’s been a very successful six months,” chief executive Rupert Soames said in a statement.

“We have delivered what will be the world’s largest contract for temporary power for a major sporting event, in the form of our work as the exclusive supplier of temporary power for the London Olympics.”

Aggreko said in June that it expected first-half sales to grow 15 per cent, indicating a slowdown in the second quarter, and underlying trading profit to rise about 20 per cent. The company, which provides generators to cover electricity shortfalls and power major events, said it would spend about £415m on its fleet, in line with its previous guidance.