Aggreko warns of slowdown in 2013

Temporary power solutions provider Aggreko this morning warned of a slowdown in 2013, following a strong year for the company.

Over the year to December, group revenues are expected to come in at around £1.6bn, up 13 per cent. Profit before tax and amortisation is expected to increase 12 per cent to £365m it said in a pre-close trading update this morning.

Despite a strong 2012, the FTSE 100 company warned that the economic environment next year is “particularly uncertain”.

No Olympics effect, the reduction in US troops in Afghanistan and the chance that Japanese clients won’t extend their contracts into the second half of 2013 could push revenues down by around £100m next year, Aggreko said.

The power solutions company added that while its international power projects and local businesses were expected to grow in 2013, it would not be enough to mitigate the £100m reduction in revenue, leading to a lower group performance overall.