15th Apr 2014 06:55
LONDON (Alliance News) - Aggreko PLC Tuesday said it has seen mixed results in its first quarter, with strong underlying revenue growth in two of its three regions being impacted by adverse currency movements as previously expected.
The temporary power company said its underlying group revenues, which exclude pass-through fuel and the impact of currency movements grew 5% in the three months ended March 31, while its reported revenues decreased 4% as a result of changes the foreign exchange rates which were anticipated in the company's full-year results announced in March.
"The latest spot rates for some of our major trading currencies have moved against the average exchange rates of 2013; if these rates pertain for the rest of the year, we would see a marked translational impact on our 2014 reported results," Chairman Ken Hanna said in a statement during March.
The company said that, on an underlying basis, revenues from its Americas division increased 11% and from its Europe, Middle East and Africa division increased 15% but underlying revenues from its Asia Pacific region fell 21% in the face of more difficult market conditions in Australia.
Aggreko said that Power Projects revenues were down 3% on an underlying basis but Power Projects margins in the first quarter benefited from a reduction in bad debt provisions as a result of improved cash collections.
However, the company said that while its quarter one order intake was 209 megawatts, its first two weeks of the second quarter have seen nearly 200 megawatts of order intake already.
The company announced in March that its pretax profit and revenues largely met expectations in 2013, as both fell in comparison to 2012 when the London Olympics provided the company with strong figures.
The company said the slight fall in revenues was due to exchange rates, lower sales from military work in Afghanistan and post-Fukushima Japan reconstruction operations, and the fact that it received no revenues from the London Olympics, which provided GBP60 million in 2012.
In December, the company announced that it has been appointed as temporary power provider to two key sporting events in 2014: the football World Cup and the Commonwealth Games.
In February, Aggreko announced that its Chief Executive Rupert Soames will be leaving the company to join outsourcing company Serco Group PLC. Soames has been head of Aggreko for 11 years, overseeing the temporary power unit company's steady but relentless growth over that period.
On Tuesday the company said that it has made an encouraging start to the year, with strong order intake, and its expectations for the full year remain unchanged.
Aggreko last traded at 1510.00 pence per share.
By Tom McIvor; [email protected]; @TomMcIvor1
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