Pressure on Soames to reveal deals at Aggreko
INVESTORS who have been starved of deal news since Aggreko’s last update in April will be looking for signs of growth when the Glasgow-based temporary power supplier gives its next briefing on Tuesday.
Despite a strong long-term track record, it hasn’t been the easiest of times lately for the group. The shares remain stuck around the same price they were at the beginning of the year despite sustained increases across the broader FTSE 100 index.
Concerns have centred primarily upon the power projects division, which handles the group’s biggest and most-profitable assignments. Most of its work comes from emerging markets, some of which are showing signs of more tepid growth.
It remains to be seen whether chief executive Rupert Soames will reveal any deals in the pre-close trading update, but analysts predict no further growth in profits until 2015.
Mike Murphy, of Numis Securities, said Aggreko has always had “high variability and low visibility” in short-term revenues, but notes that year-on-year turnover has only fallen once in the past 27 years.