Aggreko reports slide in first-quarter revenues

Temporary power supplier Aggreko has maintained its trading guidance for the year, despite reporting a slump in revenue for the first quarter.

In a trading update, the Glasgow-based company said underlying revenue for the quarter was 14% behind last year, with reported revenue down 17%.

It warned that some of its markets continued to be "challenging".

However, it said it still expected pre-tax profits for the year to be "slightly lower" than in 2015.

Aggreko reported that first-quarter revenue for its rental solutions division was down 9% on last year, while its power solutions industrial arm saw revenue fall by 10%. Sales from its power solutions utility division were 19% lower than last year.

Chief executive Chris Weston said Aggreko's performance in the first quarter had been in line with the board's expectations.

In its update, the company said: "As indicated at our full year results in March, the timing of contract start and end dates will have an impact on first half year-on-year profitability.

"Overall the guidance of slightly lower year-on-year profit before tax and exceptional items on a constant currency basis remains unchanged."

In December, Aggreko announced that it had pulled out of bidding for a contract to power the Rio de Janeiro Olympic Games.

The company said it had withdrawn from the bidding because of the size of the event and preparation needed.