On top of the void left by the Olympics, there has been an aggressive downturn in Aggreko's revenue streams from Australia as the commodities market has taken a hit. With cooling growth in China, the main driving force behind Australian mining industry, revenues have dropped in the Asian-Pacific region by 17% year-on-year. It is still too early to tell if last year’s weaker Chinese growth is a momentary blip or the onset of a longer trend.
On a more positive note, revenues have improved in both the Americas and Africa, with the regions seeing an increase of 6% and 8% respectively. Aggreko has also managed to make a sizable dent in the company’s debt. In the last quarter debt was reduced by £83 million to £469 million, compared with the 2012 figure of £685 million.
By mid-morning the share price had climbed almost 3%, up to around 1560p, but still some way off the year high of 2027p in March.