Tuesday 5 August 2014 8:54 pm

Strong pound hits Aggreko’s profits in first half of the year

TEMPORARY power provider Aggreko yesterday posted a nine per cent fall in first-half profit, with the effects of a strong pound offsetting high-profile contract awards such as the World Cup.But shares in the FTSE 100 firm climbed around three per cent in early trading, with the nine per cent decline in profit to £130m beating analysts’ expectations.Revenue edged up one cent to £768m and the company raised its dividend by three pre cent to 9.38p per share.The firm unveiled double-digit revenue growth in its local business division, which included contracts to provide broadcast and stadium power at the World Cup in Brazil and the Glasgow Commonwealth Games.Its power projects unit also performed well, in particular due to a new project in Panama. The division posted 14 per cent revenue growth and a strong first-half order intake of 500MW, putting it on track for the year.The company retained its full-year guidance. Liberum research said that Aggreko’s opportunity for growth “remains significant” but said it remained cautious about the impact of increased competition.

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