Generator supplier Aggreko last week said that trading over the past three months has been better than expected, with company officials predicting a 50-percent profit jump in the second half of 2008. The company said that group revenue for the three months ending Sept. 30 grew 39 percent.
Officials added that profit before tax is likely to increase by at least 50 percent for the year. Revenue growth has been driven by strong demand in the Middle East, Asia-Pacific, and Central and South America.
Net debt for the company has increased from £32 million (about U.S. $55 million) to £310 million (about U.S. $538 million), which officials said reflected increased investment in new rental fleet and the rapid growth of the business. During the third quarter, Aggreko secured an additional £60 million (about U.S. $104 million) in bank funding, bringing its total debt facilities to £463 million (U.S. $803 million).
Aggreko officials added that long-standing board members Derek Shepherd and Andrew Salveson will retire in April 2009. Shepherd will be replaced by Kash Pandya. Aggreko also said it is restructuring the regional alignment of the business, merging the fast-growing Middle East business with the European unit, creating a Europe and Middle East region.
Based in Scotland, with U.S. headquarters in Houston, Aggreko is No. 13 on the RER 100.
