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Shares dip as power firm issues profits warning

Category: Scotland Business News — Gary Cain on December 30, 2012

Temporary power firm Aggreko has seen over a fifth of its value wiped out, after it issued a warning over lower volumes of sales.

The Glasgow-based firm made the announcement following cuts made to military installations in Afghanistan. It also said that with no major sporting events taking place in 2013, its performance would be affected.

There are also issues surrounding its Japanese businesses, which could impact upon performance in the coming year.

It is expected that 2013 revenues could be as much as £100million lower than 2012 as a result.

A spokesperson said:

“…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.”

The warning came just a few weeks after Aggreko claimed a combination of bad debts and exchange market fluctuations would reduce its full-year profits for 2012 by 2.5 per cent.

With debts still forcing many companies to the wall, it is little surprise that others are trying to reduce their affairs. Helping many do this positively is invoice discounting, with factoring companies in Glasgow and across the country finding workable solutions.

For Aggreko, the bad debt announcement and profits warning has contributed to a 22 per cent fall in its share price. To combat the issues though, the firm has said that positive steps are being taken in response.

'Disclaimer: The information contained in these articles is of a general nature and no assurance of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a consequence of the material can be accepted by the authors or the firm.

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