Currency worries dampen Aggreko’s expectations

The strength of sterling has taken the edge off expectations for Aggreko’s first-half figures.

Aggreko logo
Source: Bloomberg

On Tuesday 5 August the markets are expecting Aggreko to announce adjusted earnings per share of £0.33. Sales for the half are due to come in at £724 million, resulting in pretax profits of £118.5 million.

Many of the UK-based generator power suppliers business is done overseas, so they have found the last twelve months of sterling strength unhelpful. The most recent example of this has been the work done during the latest World Cup in Brazil.

In addition to supplying generators, Aggreko also provides temperature control solutions which were particularly useful for all the European journalists and dignitaries dealing with the tropical temperatures.

Closer to home, it has been the supplier of choice for the commonwealth games currently held in Glasgow, and will also be catering this year’s Ryder Cup at Gleneagles in Scotland.

Since April’s interim statement Aggreko's shares have risen by almost 14%. Its order book is slightly more focused on UK events and benefits from the lack of currency exposure, so we could see the shares mounting a challenge for the July 2013 highs of 1835p.

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