Local revenues boost Aggreko first half update

Suzie Neuwirth
TEMPORARY power supplier Aggreko yesterday announced that it expects profits to remain flat in the first half of the year, although revenues will grow by five per cent.

The FTSE 100-listed firm said that revenue is expected to grow by 11 per cent in the Americas and by eight per cent in the Europe, Middle East and Africa region for the half-year ended 30 June. However, Asia-Pacific revenues are forecast to fall six per cent, due to lower turnover from Japan and Indonesia.

Revenues from Aggreko’s international power projects arm are expected to be one per cent higher but with lower margins, due to start-up costs from new gas plants it is commissioning in Mozambique and the Cote d’Ivoire.

UK business revenues are expected to grow by eight per cent in the first half.

The company’s full-year forecast remains on track, with the second half boosted by the new power project contracts coming on line.

Investor confidence in the firm has been shaken, as the firm issued two profit warnings late last year. Shares remain well below the highs of around 2,400p seen last September and closed down 2.2 per cent at 1,752p yesterday.