Aggreko sees mixed first quarter, but guidance unchanged

Aggreko, the temporary power and temperature control firm, has said that expectations for the full year remain unchanged after an in-line first quarter, though its performance remains mixed across its two main divisions.

Aggreko, the temporary power and temperature control firm, has said that expectations for the full year remain unchanged after an in-line first quarter, though its performance remains mixed across its two main divisions.

Underlying revenues grew by 8.0% in the three months to March 31st which represents a slowdown from the 14% growth seen in 2012. Underlying revenues exclude sales from the London Olympics, last year's acquisition of South American power rental firm Poit Energia, pass-through fuel and currency movements.

On a reported basis, group revenues rose by a lesser 7.0%, down from 13% for the whole of last year.

Aggreko highlighted a "very strong start to the year" in the Local business, its largest division which rents power and temperature control systems, with 17% more power on rent than a year ago. The firm said last month in its full-year results that it had seen "almost 20%" more power on rent at the start of the year.

Local revenues were up 10% on an underlying basis and 16% higher on a reported basis.

However, trading in the smaller Power Projects division, which builds and operates temporary power plants, still remains subdued with underlying revenues up 5.0% but reported sales down 3.0% due to lower levels of pass-through fuel.

"The pattern of trading is largely unchanged from that described at our results presentation on March 7th; the Local business has made a strong start to the year and trading in Power Projects remains subdued, although the prospect pipeline has improved," Aggreko said.

Recommended

Share tips of the week – 15 October
Share tips

Share tips of the week – 15 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
15 Oct 2021
Trading: stash the family cash in this cheap wealth management firm
Trading

Trading: stash the family cash in this cheap wealth management firm

Wealth management is a growth market. Rathbone Brothers should be a prime beneficiary – and looks cheap. Matthew Partridge explains the best way to pl…
12 Oct 2021
What the best-performing investment trusts of the past 20 years can teach us
Investment trusts

What the best-performing investment trusts of the past 20 years can teach us

Forty-two trusts have risen more than tenfold over the last two decades. What made the winners stand out? And how can we identify future outperformers…
12 Oct 2021
Activision Blizzard: a cheap play on videogames
Share tips

Activision Blizzard: a cheap play on videogames

Videogame maker Activision Blizzard has been in the news for the wrong reasons lately. But it has a bright future, says Stephen Connolly.
11 Oct 2021

Most Popular

How to invest in SMRs – the future of green energy
Energy

How to invest in SMRs – the future of green energy

The UK’s electricity supply needs to be more robust for days when the wind doesn’t blow. We need nuclear power, says Dominic Frisby. And the future of…
6 Oct 2021
Inflation is still one of the biggest threats to your personal finances
Investment strategy

Inflation is still one of the biggest threats to your personal finances

Central bankers and economists insist inflation will be gone by next year. We're not so sure, says Merryn Somerset Webb. So if you haven’t started to …
1 Oct 2021
How to invest as we move to a hydrogen economy
Energy

How to invest as we move to a hydrogen economy

The government has started to roll out its plans for switching us over from fossil fuels to hydrogen and renewable energy. Should investors buy in? St…
8 Oct 2021