Aggreko issues revenue warning
Firm says UK government cuts could result in lower sales
By CFOWorld.co.uk staff | CFO UK | Published 12:43, 17 December 12
Temporary power generators and solutions provider Aggreko has warned of lower sales in wake of UK government spending cuts.
Despite the 2013 outlook warning, the company said on Monday that it was on track to meet sales expectations in 2012.
Lower sales next year could be on the back of UK military spending cuts in Afghanistan, a lack of major events during 2013 and uncertainty over some of its Japanese contracts for the year ahead, the company said.
In a trading update, it noted: "After a year of strong growth in 2012, the economic environment we will be facing in 2013 is particularly uncertain in many of our markets and it is difficult at this stage to provide a definitive view of the likely pattern of trading in 2013. We expect revenue to be around £100 million lower in 2013 than in 2012."
This is the second sales warning the company has issued over the course of the year. In October, Aggreko said that bad debts and forex issues would impact its full-year profits by 2.5 percent.
However on the plus side, Aggreko announced that it had benefited by £59 million from a contract to supply power for the London 2012 Olympic and Paralympic Games.
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