Middle East buoys Lavendon results

Total revenue was up 1% at the Lavendon Group for the first nine months of its financial year, while rental revenue rose 2% compared to the same period last year.

On a constant currency basis and excluding ex-fleet equipment sales, revenue increased by 4% in the nine months up to 30 September.

Don Kenny, Lavendon Group chief executive, said trading during the year had been as expected. “Whilst mindful of the continuing economic uncertainties, the board is confident that the group will deliver another year of good progress in 2012, with full year results in line with its expectations."

Germany declined by 11% in the third quarter, mainly due to a much slower shift to the higher revenue generating truck-mounted machines, traditionally seen in the quarter, said the company. The UK also saw a drop, of 3%, in the quarter.

Belgium and France continued to increase revenues, with growth of 2% and 18%, respectively, compared to the third quarter last year.

In the Middle East, growth continued to accelerate, supported by additional fleet investment, said the company. The region boasted a 35% increase in the third quarter, following a 32% rise in the second quarter. “We continue to believe, given the encouraging market outlook and our plans to invest further in the region during 2013, that our Middle East business will grow in relative importance to the overall group performance in the near term,” commented a company spokesman.

As of 31 October, the group's net debt stood at £105 million, a modest reduction of £2 million over the same 10 month period last year, said the company. This reflects the group's planned increased investment programme for the year, it added.

Looking at actual exchange rates, the group's reported net debt was £102 million for the same period. “By the year end, and subject to fluctuations in exchange rates, we expect net debt levels to be around £100 million,” the spokesman concluded.