? Aggreko raised revenues by 17% and profits by 19% in 2010
? �90m in revenues from top sports events drops out in 2011
Temporary power specialist Aggreko said it had sealed a �37m deal to provide back-up power supplies for the 2012 London Olympic and Paralympic Games. The firm will also become a sponsor to the Games.
The win caps a strong year for the company when it supplied power for the FIFA World Cup and saw shares soar by 67%.
Rupert Soames, chief executive of Aggreko said: "We normally play away from home in places such as Beijing [2008 Olympics]), Vancouver [2010 Winter Olympics] and South Africa [2010 FIFA World Cup]. It is therefore enormously exciting to have the opportunity to perform in front of our home crowd".
Analyst Andrew Nussey of Peel Hunt said that the company has seen both its local businesses and international power businesses bounce back strongly.
"[The Olympic deal] is not a number changing event, but it is good from a profile perspective. Aggreko is the supplier of choice for [these sorts of events]," he said.
Aggreko makes roughly half its money from "local" businesses, renting equipment. The other half comes from the international power projects, where Aggreko installs and operates power plants and charges customers for the generating capacity and the electricity produced.
In August it lifted its interim and final dividends by 50%, from a 17% increase in revenues and a 19% rise in profits.
It has warned, however, that 2011 will be a lean year for lucrative sports deals such as the Olympics one announced today. It said last week that "around �90m revenue from major events in 2010 will not recur in 2011."
Shares in Aggreko rose 36p, or by 2.3%, to �15.70 on the back of today's announcement.
Mergers and acquisitions La Liga Niclas Alexandersson Global economy Crime Celestine Babayaro
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