Lavendon sees 11% growth in year to date, but Middle East declines
By Murray Pollok20 April 2011
Lavendon's revenues have grown by 11% in the period from 1 January this year to 20 April, with France and Belgium both seeing more than 20% growth, followed by Germany with a 17% increase.
The UK, which represents almost half of Lavendon's business, grew by 11%, which was only marginally higher than the 10% growth seen in Spain.
The only market to shrink was the Middle East, its best performer in recent years, where revenues fell by 7% because of lower pricing on unchanged volumes.
Lavendon said its Middle East operations are mainly in Saudi Arabia, Qatar and Abu Dhabi, all of which "have been less exposed to the recent social and political unrest in the region".
The market update was given by Lavendon in advance of its AGM on 20 April.
"The operating environment still remains difficult to predict", said Lavendon in its statement, "but during the first quarter Group revenues on a constant currency basis (excluding ex-fleet equipment sales) increased by 11% compared with the prior year, albeit a prior year period that was particularly weak due to adverse weather conditions."
The company has recently completed a review of its business plan and operational performance. Lavendon said various initiatives were now underway as a result of that review and that it would report more fully on these projects in August when it releases its interim results.
The majority of benefits resulting from these projects will accrue in 2012 and later, said Lavendon.