UK-based rental company Lavendon has issued a positive nine month trading update and affirmed its confidence for meeting full-year targets.
The company, which operates in Europe and the Middle East, said total revenues for the nine months ended 30 September 2015, on a constant currency basis and excluding ex-fleet equipment sales, increased 2% year-on-year, with rental revenues increasing 1%.
Rental revenue growth was strongest in the Middle East, which showed a 7% year-on-year increase for the nine-month period. This region contributed 22% to Lavendon’s overall rental revenues, and the company said the outlook for the region remained positive.
It added that it continued to allocate additional capital to expand its fleet in support of its growth strategy in the region.
The UK, which contributed 47% to total rental revenues, showed a decline of 1% year-on-year. Lavendon highlighted improvements in the third quarter, and said its focus was on service differentiation driving a more favorable mix of rental machines with stable pricing that mitigated lower year on year volumes.
And Continental Europe showed rental revenue growth of 2% for the nine-month period. This region contributed 31% to overall rental revenues at the company, with third quarter growth seen in France and Belgium, with a small decline from Germany.
Lavendon added that the delivery of its £20 million (€28 million) accelerated fleet investment programme was almost complete.
Chief executive Don Kenny said, “The group’s trading performance in the first nine months of the year has improved across our markets, driving growth in revenues, profitability and margins.
"The Board remains confident of delivering on its profit expectations for 2015, and with the delivery of the accelerated fleet investment now almost complete, we are well positioned to respond to market opportunities as we move into 2016.”