Under the terms of the new deal, announced today, Aggreko generators will power Stratford’s Olympic base, including the velodrome and the aquatics stadium. It will also power most of the brother and sister stadia across the UK, from up in Glasgow down to the sailing venue in Weymouth.
This is by no means an easy feat. Aggreko will have to lay 1000km of cable and install 3,500 distribution panels to fulfill the Games contract, but with a £50m price-tag hanging over the business, CEO Rupert Soames probably doesn’t mind a little extra grunt work.
Soames doesn’t shrink from a bit of precautionary cash flashing as a rule. The Olympic contract, alongside a raft of new business from Africa and Japan, prompted a £350m spending spree on the Aggreko fleet this year. That’s a serious wedge in the current climate, and £30m more than Soames had intended to fork out. The capital outlay takes net debt to £428m in the three months to April.
But, no matter. The balance sheet is looking extremely robust: Aggreko has secured some 150MW of new projects since March, including a 100MW generator contract in the Dominican Republic, worth about £50m over two years. The company is also set to complete the acquisition of its South American rival Poit Energia at the end of this month, two months ahead of schedule, no less.
In a statement today, the company stated: ‘We continue to believe that we will deliver another year of good growth in 2012.’ Full beam ahead…