Aggreko, the Scottish firm behind temporary power systems at sports venues and disaster zones around the world, said yesterday that trading in the first quarter had been in line with its expectations.
Underlying group revenue grew by 8% in the three months to the end of March. On a reported basis, revenue rose by 7% and trading margins were in line with the same period last year.
On the underlying basis, the Americas region increased revenue by 9%; Asia, Pacific and Australia was 1% ahead; and Europe, Middle East and Africa jumped 13%. Underlying power-project revenue was 5% ahead of last year, but reported revenue fell 3%.
Aggreko said its local business had made a very strong start to 2013, with 17% more power on rent than a year ago.
Underlying first-quarter revenue was up 10%, while on a reported basis it rose 16% and trading margins were similar to last year. It added: “We now expect to spend around £130million in the first half on fleet capital expenditure (capex), and around £260million for the year as a whole.”
Last month, Aggreko announced a 13% rise in pre-tax profits and revenue in 2012 to £367million and £1.58billion, respectively.
Carrie Keenan, an investment manager at Brewin Dolphin in Aberdeen, said: “Aggreko has reduced its expectation for first-half capex, from £150million to £130million and expects a similar amount in the second half of the year. The level of capex has traditionally provided a steer on growth expectations and the £260million estimate for the full year is the lowest figure since 2010.”