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Aggreko PLC - TOKYO 2020 OLYMPICS UPDATE

RNS Number : 4072H
Aggreko PLC
24 March 2020
 

 

           

AGGREKO PLC

24 MARCH 2020

 

 

TOKYO 2020 OLYMPICS UPDATE

 

Aggreko plc notes the recent announcement by the International Olympic Committee (IOC) and The Tokyo Organising Committee of the Olympic and Paralympic Games (TOCOG) postponing the 2020 Tokyo Olympic & Paralympic Games (the Games) until a date beyond 2020, but not later than summer 2021.  Following this decision, we will now enter detailed discussions with our client, TOCOG, regarding our role in supporting the Games to a later timetable.  While we have a contract that provides a framework for these discussions, the commercial terms and operational impact surrounding the postponement will need to be worked through in detail with TOCOG.  As a reminder, the initial contract value was c.$200 million although, as we confirmed at the time of our results announcement on 3 March, following various scope changes we expected the contract value to increase to around $250 million.  At this point, we have received $98 million in milestone payments under the contract.

 

As noted in our announcement of 23 March, we are in a strong financial position. We have considered a range of scenarios to stress-test the Group's liquidity position through to the end of this year, including the situation in which the Games do not take place this year.  These show that even in a reasonably probable worst case scenario, with appropriate mitigating actions, we expect to remain within the Group's financial covenants, while maintaining headroom under our existing committed facilities.

 

A short conference call will be held today for investors and analysts at 15:00 (GMT) hosted by Chris Weston, CEO; dial-in details are below.

 

Enquiries


Investors and analysts

Louise Bryant, Aggreko plc

+44 7813 210 809

Richard Foster, Aggreko plc

+44 7989 718 478

Financial media

Andy Rivett-Carnac, Headland

+44 7968 997 365

Sophie O'Donoghue, Headland

+44 7798 687 042



Conference call

 

Participant dial-in

United Kingdom                                                              0800 279 9518

All other locations                                                           +44 20 3655 9505

Participant Access Code                                                  154 6350#

This is a live call as there are no hosted conference call lines available. Please mute your line when you join.


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Quick facts: Aggreko

Price: 435.6

Market: LSE
Market Cap: £1.12 billion
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