Steady growth at Lavendon
11 July 2014
Lavendon Group’s revenue increased 6% in the first six months of 2014, with rental revenues rising by 7%.
Based on actual exchange rates, revenue and rental revenues for the half year increased by 4%, compared with the previous year. In the second quarter revenues increased by 5% while rental revenues increased by 6%.
There was strong growth in some parts of the rental group’s European business, although some other parts fared less well. The UK saw an 11% rise in rental revenue in the second quarter, compared to the same quarter in 2013 and France produced a 7% increase. But Germany and Belgium suffered in the quarter, each with a 9% drop in revenues.
“Volumes for the UK business remained consistently ahead of the prior year with a more favourable mix and further pricing improvements secured. In Germany and Belgium, volumes were relatively weak and while the pricing environment in Germany is showing signs of stabilising, Belgium has seen pricing pressures increase in the quarter,” said a company spokesman.
The rate of revenue growth in the Middle East was consistent with the first and amounted to a 13% increase. “The market outlook for the region continues to be positive, and we are currently allocating additional capital into the region as previously planned,” said the spokesman.
As expected, the group's net debt level for the first six months to 30 June increased to UK£102 million, on a constant currency basis relative to the £97 million at the 2013 year-end. At actual exchange rates, was £99 million.
The planned investment programme will be comfortably funded from annual cash flows, said the company.
Don Kenny, chief executive at Lavendon, commented, “The Group's performance in the first half of the year is encouraging, with particularly strong revenue growth from our key UK and Middle East businesses. We are now consistently delivering growth in overall revenues which is driving improvements in both profitability and margins. Whilst recognising the continuing economic uncertainties in our Continental European markets, the board is increasingly confident of delivering on its expectations for 2014."
