Aggreko shares have reacted well to the company’s latest trading update, with the shares up by over 5.5% in the first 30 minutes of trading. The power and energy solution company has continued its good track record of securing premium contracts to global sporting events and, following the boost that the 2012 Olympics had for the company, are now in place to be the provider of temporary power to both the 2014 Commonwealth Games in Glasgow and the FIFA World Cup 2014 to be hosted in Brazil.
With such large contracts in the year ahead, the company has taken the opportunity to continue to reduce its net debt, and has managed to reduce this by £200 million over 2013, bringing the firms debt below £400 million.
At the same time as reducing debt, Aggreko has placed orders for a further £15 million worth of ancillary fleet items, taking its total to £215 million by the end of 2014.
The share price action for the stock over 2013 has been stuck in a downward trend and buyers might be tempted to wait for a break above the trend line before trading, but it is certainly worth monitoring.