Aggreko, the world's biggest temporary power provider, has said its tax bill will be nearly £30m lower this year thanks to the Chancellor's move to overhaul the liability on overseas profits.
That is after the power group – which is supplying generators to London's Olympics next summer – enjoyed a surge of new orders overseas during 2011, with its division working in emerging markets including Africa and India seeing revenues rise 24 per cent.
As a result, Aggreko said, George Osborne's introduction of legislation to exempt the profits of foreign branches of UK companies from corporation tax was applicable to "a significant portion" of its international work. The company had set aside about £28m to pay the tax.
Aggreko added that from its 2012 financial year onwards, its tax rate will be about 3 per cent lower.
The group also raised its profit expectations for 2011 yesterday, reporting that a strong fourth quarter meant its profits are likely to hit £324m, up from the £320m.
Aggreko added that it had won an extension of a contract in Bangladesh worth $100m (£64m) to exchange a diesel-fuelled power plant for one running on natural gas.Reuse content