Glastonbury cancellation hits trading at power generator supplier Aggreko
The cancellation of this year’s Glastonbury Festival and other big events because of the coronavirus outbreak has hit trading at Aggreko.
The power generator supplier scrapped its dividend to preserve cash and warned investors it will not meet its financial targets for 2020.
The firm rents portable power generators and air conditioning units to concerts, festivals and sports games.
Aggreko has been Glastonbury’s supplier – where popstar Taylor Swift was due to headline this year – since 2007
It had a contract to power the 2020 Tokyo Olympics and Paralympics, though this will now be pushed back as the games are postponed to 2021.
It has been Glastonbury’s supplier – where popstar Taylor Swift was due to headline this year – since 2007 but only around 8 per cent of Aggreko’s revenue comes from its events division.
It will, however, be vulnera- ble to the recent slump in the oil price. Around a third of its revenue comes from renting generators in North America.
A quarter of that comes from the oil and gas industry that has been hit hard by the 60 per cent fall in oil prices since the start of the year.