Aggreko (LSE: AGK), the temporary power systems supplier powering the London Olympics, has reported notably higher profits for the first half of the year, but warned that slower growth in emerging markets could hamper that upward trend.
It is now the leading supplier of temporary power in the world with a market share of 30 per cent and has supported the Glastonbury music festival, the inauguration of President Obama, as well as the Olympics.
First half revenues to June 30th rose by 16 per cent from $836m a year ago to $1142m, with first half profits jumping from $197m to $247m.
However Chief Executive Rupert Soames (pictured) said “These are numbers that may moderate a bit in the second half, but they are still attractive. We anticipate underlying growth will be lower in the second half than in the first, in part because of tougher comparators, and in part because of continued macroeconomic weakness in some of our larger mature markets.”
The company’s order book climbed 16pc and is at record levels and at the current run rate would provide enough work for 14 month’s revenues.
During the first half of the year, its Indian business grew 64pc and Aggreko also built a new temporary power plant in Mozambique that will provide power to both Mozambique and South Africa.
There was a 34 per cent jump in trading profit at its Asia, Africa and Latin America division.
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