Equipment rental firm Lavendon last week announced that pre-tax profit increased more than five-fold in the first half of 2011, as the benefits of its restructuring program begin to take effect. In the six-month period ending June 30, profit before tax leaped from £0.7 million in the same period of 2010 to £4.6 million this year, while revenue was up 4 percent from £4.1 million to £10.4 million.
"The modest recovery in our markets combined with operational improvements have both contributed to increased operating margins and return on capital employed," said John Standen, executive chairman.
The company's German division, where revenue increased by 9 percent to £23m, is planning to reshape the business over the next 18 months to better align it with the market place and so it has a better chance to deliver acceptable returns on the capital employed in the business, the company said.
Performance in the Middle East had been "disappointing" for the group, while results in all other locations were improving.
Lavendon is based in Lutterworth, Leicestershire, U.K.