Full year rises for Lavendon
By Euan Youdale28 February 2013
Lavendon Group saw rental revenues and operating profits rise 2% and 17%, respectively, in 2012.
The positive outcome was chiefly a result of expansion in the Middle East and a strong French market, said the company in its full year preliminary results.
At the end of 2012, total revenue for the year stood at £220.7 million, up from £216.9 million in 2011. Operating profits increased 17% to £35 million, from $30 million in the previous year.
Don Kenny, Lavendon Group plc chief executive, said, "The group made good progress during 2012 with results for the year at the top end of our expectations despite challenging trading conditions in our European markets.
“The strong revenue growth from our French and Middle East businesses, together with the disciplined delivery of our business plan, have delivered considerable improvements in the group’s profitability, margins and return on capital employed. Our robust cash flows have also supported increased fleet investment, funded an enhanced dividend and enabled further debt reduction,” Mr Kenny added.
In other figures from the year, profit before tax increased 26% to £27.6 m, and return on capital employment increased to 10.7% from 9% in 2011. Earnings per share were up 28% to 12.83 pence, while net debt reduced to £97.3m from £106.6 million in 2011.
Full year dividend increased by 57% to 2.75 pence. "Our increased dividend underlines the board’s confidence in the group’s future prospects,” explained Mr Kenny.
“While trading since the year end has been disrupted by the adverse weather seen in the UK and Continental Europe, and being ever mindful of the continuing economic uncertainty, the board remains confident of its expectations for the year as a whole and believes the group is well positioned to deliver another year of financial progress and continue to create increased shareholder value over the medium term," Mr Kenny concluded.