Lavendon boosted by growth in France and Middle East
By Murray Pollok23 April 2012
Lavendon reported an 8% increase in revenues in the first three months of the year, with growth led by France and the Middle East, both of which reported more than 25% increases in rental revenues.
Rental revenues in its two largest markets - the UK and Germany - were up 1%, while growth in Belgium in the three months was 3%. Increased sales of new equipment added 2% to the quarterly growth figures.
The company said growth was in line with expectations and that if current momentum was maintained "the Group will deliver another year of good progress".
The UK business saw a drop off in volumes in the quarter - because of the completion of some major projects in late 2011 - but this was offset by higher pricing. Revenue increases in Europe were driven by volume increases, with France and Belgium benefitting from the additional fleet transferred from the closed Spanish operation.
"In the Middle East, our strong market position continues to attract increased volumes, and these have accelerated the rate of year on year revenue growth across the quarter", said the company in its interim management statement.
Lavendon said actions to improve the profitability of the German business were delivering the expected benefits, "and these should continue to accrue throughout the year."