Aggreko powers ahead of forecasts in UK

The power supplier for major events such as the Glastonbury festival and the US Super Bowl said today it was on course for better-than-expected profits.

Glasgow-based Aggreko, which specialises in portable power supply products, caused a surge in City forecasts after it delivered a 60% rise in half-year profits and said annual figures should be well ahead of analysts’ hopes.

Aggreko has benefited from investment in its rental fleet, but also noted that power shortages in many of the countries in which it operates meant there was likely to be a growing need for its temporary power.

Investec Securities said Aggreko’s half-year profits of £47.5m (€69.4m) represented “another very strong set of figures”, adding that it had raised its forecast for annual profits by 10% to £122m (€178m).

Aggreko said the six months to June 30 had been “exceptionally strong” with revenues after currency fluctuations up by 33.4% at £317.5m (€464m).

One of the strongest performances came in international power projects, with the division securing 14 new contracts, including a number in the Middle East.

In northern Europe, revenues of €58.6m were 39% higher after UK operations benefited from strong growth in the utility and construction sectors. The UK events business undertook a number of large contracts in the period, including Glastonbury.

Aggreko said it had made a good start to the second half of 2007, particularly as higher temperatures in North America boosted demand for seasonal products, such as air conditioning.

Chief executive Rupert Soames added: “In many of the 90 countries in which we operate, there are power shortages caused by demand outstripping supply and ageing infrastructure; these issues will not be resolved quickly, and we foresee a growing need for temporary power.”

He said: “We have good momentum going into the last four months of the year, and we believe that, short of a major deterioration in market conditions, performance in the second half will be well ahead of last year.”