AS THE spectacle of the 2008 Olympics becomes a distant memory, it appears the real winners of the games were those companies that helped stage the event, without which there would be no Olympics.
Take Glasgow-based Aggreko, a global provider of rental power, temperature control and compressed air systems. It played a crucial role in supporting the games by supplying temporary power generation equipment – one of the largest and most complex co
ntracts ever undertaken by the company.
Despite the enormity of the task, Aggreko rose to the occasion with gusto. "We lit up the Olympics," exclaimed Rupert Soames, the company's chief executive, referring to the 140 megawatts of power the company supplied to 32 venues across Beijing.
The deal, worth £18 million, contributed £9.7m of revenues in the first half and helped its profits rise 42 per cent to £67.9m, in line with analysts' expectations and a new record for the company.
Under its contract, Aggreko was responsible for supplying power to the National Stadium and the International Broadcast Centre which transmitted the opening ceremony to four billion viewers around the world. "Watching the ceremony was a once in a lifetime experience," said Soames. "And the enjoyment of the spectacle was enhanced by knowing that Aggreko was a key part of the infrastructure."
Aggreko, however, wasn't the only British company to play a key part in staging the games. Services group Rentokil Initial Plc, known as the royal rat catcher, was awarded a swarm of contracts to deal with rodents, cockroaches, mosquitoes and flies, lifting the company to a 21 per cent increase in underlying profit.
Rentokil, which deployed 150 expert technicians in selected venues including the cycling arena, archery centre and the centrepiece Bird's Nest stadium, said the lucrative contract was powering its Asia-Pacific operations – one of its fastest-growing divisions.
Then there's London-based WPP Group, one of the world's largest communications services groups – its advertising agency Hill & Knowlton represented the Beijing Olympics organising committee, helping its like-for-like sales to grow 4.3 per cent in the first half of 2008.
While many of its rivals reported a fall in business activity, WPP, which also owns Ogilvy & Mather and Young & Rubicam, expects business activity in 2008 to match that of 2007, helped in no small way by the Beijing Olympic Games.
Looking ahead to the London 2012 Olympics, industries that can expect to profit from the games include hotels and tour operators, leisure and hospitality, and of course construction.
The Olympic Park will be the largest new city-centre space developed in Europe for more than 200 years. Stadiums, arenas, and accommodation for competing athletes will all have to be built, while transport links and facilities will also be improved. All of which should prove extremely lucrative to those companies awarded contracts.
As with the Beijing Olympics, media and advertising companies should also do well, as will support services companies such as Aggreko. In fact, Aggreko's relationship with the Olympics is already on track to continue. Not only does the Scottish company support the Paralympics, it is also supplying power to the Vancouver 2010 Winter Olympics and London 2012.
• Nick Raynor is investment adviser at The Share Centre
The full article contains 544 words and appears in The Scotsman newspaper.
