Glasgow firm Aggreko forecasts flat first-half profits

Aggreko provides temporary power solutions to countries around the world

Temporary power firm Aggreko is forecasting flat profits for the first half of the year, despite seeing a 5% rise in group revenues.

The Glasgow-based company said sales for the Americas should grow by 11%, with revenues for Europe, the Middle East and Africa up by about 8%.

But its Asia Pacific sales are forecast to fall by 6%, thanks largely to lower revenues from Japan and Indonesia.

The group said results to 30 June should be in line with expectations.

Its local business division, which rents out products ranging from small generators to large cooling plants around the world, is on track to deliver a strong first half, with revenues growing by around 9% on an underlying basis.

Aggreko also expects sales in its power projects arm to be about 1% ahead of last year.

In a trading statement, the group said it expected sales in that division to improve in the second half, as new gas contracts in Mozambique and Cote d'Ivoire come on line.

The international power arm serves utilities, governments, armed forces and major industrial customers with power plants ranging from 10 megawatts to 100 megawatts on a single site

Earlier this year, Aggreko - which supplied power for the London Olympics in 2012 - warned that a lack of major events during 2013 and uncertainty over some Japanese contracts could hit its performance this year.