UK: Brazil World Cup boost for generator hire group Aggreko
- Credit: Archant
Generator hire specialist Aggreko has confirmed it has been chosen to supply temporary power to next year’s World Cup in Brazil as well as the 2014 Commonwealth Games in Glasgow.
The contract represents another sporting boost for the FTSE 100 group, whose performance for 2013 has suffered in comparison with 2012 because of factors including the impact of the London Olympics.
However in a trading update, the company said full-year results would now be slightly ahead of expectations.
Revenues are pencilled in at £1.57billion, a similar level to last year, with pre-tax profits expected to be “at least £335million”, although this figure is still some way below last year’s £365m.
The company said: “We are delighted to report that we have been chosen as the supplier of temporary power for the 2014 Fifa World Cup and the Glasgow 2014 Commonwealth Games.”
Aggreko said that on an underlying basis - stripping out the Olympics and some other factors - revenues for 2013 would be 3% higher and trading profits on a similar level to last year.
This represents growing turnover in the Europe, Middle East and Africa region, as well as the Americas, but a 12% fall due to partly to contracts ending in Japan.
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Its power projects arm - which runs contracts from mining in Australia to army camps in Kosovo - will see revenues down about 2%.
A major deal in Panama will see it supply the country’s wholesale energy market, competing with the country’s permanent power generators.
Shore Capital analyst Robin Speakman said the update provided slightly better news on trading but said the World Cup and Commonwealth Games contract wins, while pleasing, were “not of the same scale as last year’s Olympics”.