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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.

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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.

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