25 June 2002 – Shares in Aggreko suffered their largest one-day fall on the London stock market after the mobile power supplier gave warning that poor US trading would reduce profits by about 15 per cent this year.
The company, which is providing temporary power to television broadcasters at the World Cup Finals, saw £226m ($340m) wiped off its market value after shares fell 35 per cent to 157p.
Aggreko said trading conditions in the US were “very difficult” because the increase in power stations prompted by the Californian power crisis together with the economic slowdown has left an oversupply of generation equipment. The company said it hoped for an improvement next year.
Aggreko share price has now fallen to the level last seen when the group was spun off from Christian Salvesen in 1997. Yesterday’s price crash suggests that investors doubt the company’s ability to deliver any significant long-term growth.