Date: Friday 15 Jun 2012
Temporary power provider Aggreko has seen a slow-down in underlying revenue growth in the second quarter of 2012.
The group said it expects first half underlying group revenue will grow by around 15% and trading profit by around 20%. Back in April, the group said both its International Power Projects and Local divisions delivered underlying revenue growth of more than 20% in the first quarter, so top-line growth has clearly slowed.
On a reported basis, group revenue and trading profit are expected to increase by around 14% and 25% respectively in the six months to the end of June.
Aggreko said it is probable that the deteriorating macro-economic picture will reduce the underlying rate of growth in its Local business division in the second half of the year, but the effects of this will be more than offset by the impact of the London Olympics and the boost given by the Poit Energia acquisition in Brazil.
"In the Local business we expect underlying revenue to grow by about 13% in the first half. Within this, our Europe and Middle East business is expected to grow by around 9%, North America by around 11% and Aggreko International's Local business by about 25%," the company stated. "We expect Local business trading margin in the first half to be a little better than last year on an underlying basis," it added.
In its International Power Projects (IPP) division a decent flow of orders in the first half should mean faster revenue growth in the second half of the fiscal year than in the first. As a result of this, the group has announced plans to up its investment in its fleet by £50m to around £415m.
The IPP division's revenue excluding pass-through fuel and currency movements is expected to grow by around 17% in the first half.
Trading margin in International Power Projects, excluding pass-through fuel, is expected to be higher than that achieved in the first half of last year, notwithstanding a similar increase in the bad debt provision. In the second half of the year margins in this division are expected to be lower than in the same period in 2011, in large part due to higher mobilisation costs.
"Overall, we anticipate that group margins for the year will be at similar levels to 2011," the company said.
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