Aggreko hit by pound’s strength despite starring roles at top events

The FTSE 100 listed group, which employs a tenth of its 5,750-strong workforce in Scotland, said half-year profits were 9 per cent lower at £132m as it suffered a “significant adverse impact” from currency translation.

Excluding the sterling pressure, Aggreko said it delivered a good performance in the first half of the year, with notable contracts including the FIFA World Cup in Brazil for which it provided all the broadcast power.

And in the last few days, Aggreko delivered 27 megawatts of temporary power across the Commonwealth Games’ 29 venues and broadcast centre.

The movement in exchange rates in the period reduced revenues by £80m and trading profit by £23m in the half year.

The measures rose by 12 per cent and 6 per cent to £768m and £140m respectively when excluding the currency impact.

Angus Cockburn, the company’s interim chief executive, described the first half performance as “encouraging” and said that underlying profits for the full-year will be similar to 2013. Shares rose 2 per cent yesterday.

Aggreko was founded in the Netherlands in 1962 and demerged from the Salvesen Group to become separately quoted on the London Stock Exchange in 1997. Its UK arm was set up in Scotland in 1973.

Liberum analysts, who have a ‘hold’ rating on the stock, said the results were encouraging.

“First half pre-tax profit is 6 per cent ahead of our forecast, with Q1 underlying growth having increased from 5 per cent to 12 per cent,” they said in a note.

“Overall the outlook is unchanged, although adverse FX provides an additional 2 per cent headwind to forecasts. 2014 should prove a tough year for profit, but a high level of wins is still required to improve utilisation and we remain cautious over the impact of increased competition,” they said.

Aggreko said order intake for the first half of the year was 488 megawatts, ahead of the 397 megawatts secured in the same period last year.