Lavendon reports Q1 growth in revenue
By Maria Hadlow20 April 2011
Powered access rental company, Lavendon Group plc reported that its preliminary results indicate rental income up 11% for the first quarter of 2011 compared to the same period of 2010. This figure excludes used equipment sales.
Weather conditions were particularly poor in Europe at the beginning of 2010, which Lavendon suggests might account for some of the growth.
There was growth in all the European countries in which Lavendon operates, the highest growth of 24% being in Belgium although this market contributes just 7% to total rental revenues. The largest contributor, the UK (48%) grew 11% and even the Spanish market increased 10% - adding 4% to the total rental revenue.
The Middle Eastern market, which contributes 13% to the whole fell by 7% in the first quarter compared to 2010. The majority of Lavendon's Middle East revenues are generated from Saudi Arabia, Qatar and Abu Dhabi, all of which have been less exposed to the recent social and political unrest in the region. Volumes were broadly unchanged but average prices have fallen and are yet to recover.
The Group's borrowing levels remain broadly unchanged from the reported year-end position. However, on a constant currency basis net debt reduced in the quarter from £140.1 million to £137.5 million. Lavendon continues to focus on further significant reduction in net debt levels by the year end.