Shares in temporary power provider Aggreko (AGK) fell by 17 per cent after the company warned that shrinking military contracts in Afghanistan and uncertainty over the renewal of business in Japan would, when combined with the absence of one-off events such as the Olympics, cause a £100m revenue shortfall in 2013. Broker Panmure Gordon cut 2013's forecasts for adjusted pre-tax profits from £379m to £340m, giving EPS of 96.8p. This comes only two months after forecasts were initially cut from £391m.
The international power projects (IPP) business, responsible for around two-thirds of trading profit, reported slowing growth and falling trading margins after bad debts rose as Aggreko supplied generators to riskier parts of the developing world. The company said the IPP order intake for the year is expected to be 1,000 megawatts (MW), down from 1,200MW last year.
The local business, which provides generators for one-off events, expects revenue growth of around 24 per cent in 2012, with margins rising two percentage points to 19 per cent. Aggreko expects continuing growth next year, albeit at a much lower rate.
