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Can Aggreko live up to 2012 high?

Mon, 12/17/2012 - 17:36 -- Ruth Williams

The firm that supplied power to the Olympics and Paralympics has warned it will struggle to fill the London 2012 void next year.

Shares in Aggreko plunged 17%, as it is unlikely to be able to replicate the success it enjoyed from the £59 million London 2012 contract in 2013. The company has also lost military revenues as US troops withdraw from Afghanistan and faces the possibility that some Japanese clients will not renew their contracts.

This could amount to £100 million missed in repeat revenues that will affect profits for the next year. After shares growing rapidly in 2012 with the boom in business, the stock has now returned to its start of 2012 position.

This is the second warning sigh from Aggreko following an announcement in October that an increase in bad debt provisions would affect results for this year.

Underlying profits should be around 12% higher at £365 million, with revenues from its local division, which handled the Olympics, up 24%.