Aggreko hit by FX in first half but underlying growth on track

5th Aug 2014 07:43

- Trading profit down 10% due to FX- Underlying trading profit up 6%- Full-year guidance unchangedTemporary power and temperature control group Aggreko said its financial results for the first half reflecting a "significant adverse impact" from currency movements, though its full-year guidance remains unchanged after good underlying growth during the period. Trading profit, which represents operating profit before gains on sales of property, plant and equipment, fell by 10% to £142m in the six months to 30 June, but improved by 6% on an underlying basis.Reported revenues rose by just 1% to £768m. However underlying revenues, adjusted for currency movements and pass-through fuel, showed a 12% increase on the back of strong growth in Europe, Middle East and Africa.From a divisional perspective, both the power projects unit and 'local' business saw double-digit underlying growth. Order intake in power projects totalled 488MW, up from 397MW at the same time last year. Meanwhile, local trading was helped by growth across developed and emerging markets, with contracts for the FIFA World Cup and Commonwealth Games said to have been executed successfully.Overall, Aggreko said that group performance in the first half was "encouraging", but comparatives in the third quarter are more challenging with full-year guidance unchanged - it still expects underlying trading profit for 2014 to be flat on last year."In power projects, whilst we take some encouragement from the order intake in the first half and a healthy enquiry pipeline, customers generally remain cautious."BC