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Aggreko reports profits increase

4 March 10 11:00 GMT

A company that provides power to the world's major sporting events has reported a big lift in profits.

Glasgow-based Aggreko saw pre-tax profits during 2009 rise 29% from £192m to £247m. Group revenue rose 8%, past the £1bn mark.

The news follows a recent announcement from the company that it had won a £30m contract to provide power to stadiums at the 2010 World Cup in South Africa.

Most of the firm's growth stemmed from providing power in developing nations.

As well as providing power to nations such as Kenya and Sri Lanka, Aggreko is also a contractor to the armed forces in Afghanistan and Iraq.

During last year, it supplied power in 56 countries and has reported a strong start to 2010, with contracts for 360 megawatts of power signed so far in Panama and Oman.

'Strong start'

Future prospects for the firm are being helped by economic growth in developing nations, where conventional power generation is not keeping pace.

The company said it foresaw strong prospects from developed countries, with ageing power plants and a shift to renewables leaving a need for temporary supply.

Aggreko's local business division, which rents out small-scale generation or refrigeration plant for customers to operate themselves, did not grow significantly in 2009.

The main growth came in International Power Projects, where Aggreko provides larger-scale power supply over a longer period.

Chairman Philip Rogerson said Aggreko was stepping up its equipment investment plans for 2010 from £180m to £200m.

He said: "Aggreko delivered another record performance in 2009, despite the challenging economic conditions.

"While we remain cautious about the outlook for the local business, we are encouraged by the strong start made by International Power Projects in 2010.

"Given the encouraging prospects for international power projects, and the additional fleet investment, we now believe that we will do a little better than we anticipated at the time of our December trading update."

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