Lavendon's rental revenue keeps growing

17 November 2011

International rental company, the Lavendon Group plc, announced year-on-year growth of 8% for the nine month period to the 30 September compared to 2010 - growth in the third quarter was 7% compared to last year.

The UK continues to contribute the largest amount of revenue to the group accounting for 50% on the income, with Germany contributing 23%. UK rental revenue has increased 9% first nine months of the year (7% Q3) and Germany 8% (4% Q3) the country with the largest growth has been Belgium with 15% (9% Q3) closely followed by France 13% (8% Q3).

Lavendon said, "During the third quarter, revenues from our UK and continental European businesses have continued the trend of growth over 2010, albeit at a lesser rate than in previous quarters due to progressively stronger comparatives."

The Middle East which experienced falling revenues in Q1 has come back to report a nine month growth of 1%. Lavendon said, "In the Middle East, despite demand patterns remaining somewhat unpredictable, the rate of rental revenue growth over the prior year has increased, driven primarily by the continued recovery in the Abu Dhabi and Saudi Arabian markets."

Lavendon said that revenue growth and improved operational efficiency is delivering increased profit and that it anticipates this will continue in the coming months as its plans to realign its German business and redeploy its Spanish fleet gather momentum.

Figures quoted above exclude revenues from the Group's Spanish business, which is in the process of closing and which will be reported as a 'discontinued business' at the year end.

Since the half-year, the Group's net debt level has continued to reduce and, as at 31 October 2011 following the acquisition of Blue Sky Access for an initial consideration of £3.4 million, stood at £124.3 million (compared to £140.3 million at the previous year-end). Lavendon expects this debt level to reduce further over the remainder of the financial year.

Of the final quarter of 2011 Lavendon reported, "Trading in the fourth quarter to date has been in line with our expectations, and whilst we are alert to the increasing uncertainty in the macro economic climate, the Board believes that the Group will deliver a full year result in line with its expectations."

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