Continued revenue growth in the UK, France and some Middle East territories helped Lavendon grow its first half revenues by 11 per cent, year on year, with only Germany, Belgium and Saudi Arabia showing declines or modest growth rates.
In its half-year trading statement the company said it was too early to assess the full impact of the UK’s Brexit vote but noted it was “well positioned”, given that half of its revenues were generated outside the UK and that a prolonged period of Sterling weakness would have a positive “translational impact” on overseas revenues. This would offer some protection in the event of any adverse economic consequences, said Lavendon.
The UK was a strong performer, with claimed market share gains generating a 7 per cent increase in rental revenues for the first six months of the year. This was driven also by a larger fleet and greater availability of the fleet through a more efficient transport and maintenance operation.
In the Middle East, growth in the company’s operations in UAE, Kuwait, Oman and Qatar helped offset a decline in its Saudi Arabian operation. Revenues increased by 22 per cent year on year on the back of higher utilisation of a larger fleet.
In Continental Europe, meanwhile, revenues were up 3 per cent, driven by a 10 per cent increase in France and 2 per cent in Belgium. These helped offset a 2 per cent decline in Germany, where a previously announced restructuring continues. The company booked a £2.5 million charge related to this restructuring, as well as for the re-integration of the UK transport function that was previously outsourced.
Don Kenny, Lavendon’s Chief Executive, said the growth reflected the benefits of the investment programme in 2015 to strengthen its market positions in all regions, “and the continued operational improvements made during the first half to support the delivery of our growth plans.
“Given the encouraging trading performance in the first half, together with the degree of resilience provided by our international operations, the Board remains confident of making further progress during the year and delivering on its expectations for 2016."