Equipment rental firm Lavendon Group this week announced operating profit for full-year 2011 increased 21 percent to £30.0 million (about U.S. $47.5 million) from £24.7 million a year ago. Total revenue grew 4 percent to £225.4 million (U.S. $357.2 million) from £217.5 million in 2010. Rental revenues for the year increased 8 percent to £216.9 million (U.S. $343.8 million) from £200.7 million in the same period of 2010.
“The group made good progress during 2011 in improving the financial performance of its operations,” said Don Kenny, chief executive. “As we move into 2012, we are encouraged by the operational efficiency gains to date and the impact that these will have on the group’s operating leverage as revenue growth is delivered.”
In 2011, Lavendon successfully exited its business in Spain, redeploying its fleet to France and Belgium. Disappointing performance in the Middle East in the first half of the year progressively improved with rates of growth accelerating over the second half of 2011.
“Our improvement plans for Germany are being implemented and our Middle East region is now demonstrating a sustained recovery in revenues,” Kenny said. “The increased level of capital investment in the group’s rental fleet planned for 2012 will be funded from our annual cash flows, still allowing free cash to be generated to reduce net debt levels further.”
Lavendon, which has operations in the U.K., Germany, Belgium, France, Saudi Arabia, the United Arab Emirates, Bahrain, Oman and Qatar, is based in Lutterworth, Leicestershire, U.K.