U.K.-based aerial equipment rental company Lavendon Group surpassed its own expectations in the first half of 2012 with overall revenue growth of 6 percent compared with the first half of 2011, with second-quarter numbers topping the year-ago second quarter by 5 percent, the company said in a trading update last week.
The U.K. business produced revenue growth of 1 percent year over year, contributing 48 percent of the company’s total group revenues. The company’s strongest growth came in the Middle East with a total of 30-percent year over year growth. The relatively young business segment contributed 15 percent to overall group revenue.
Rental revenue in Germany dropped 2 percent, with disruptive timing of public holidays in May contributing to the decline. The German business contributed 21 percent of the company’s revenue. France grew 19 percent to contribute 9 percent of company volume and Belgium increased 3 percent to contribute 7 percent of group revenue.
Lavendon said the combination of revenue growth in the first half and its ongoing program to improve its operational and capital efficiency helped the company improve profitability, margins and return on capital. The company reduced capital deployed in its German business and deployed additional capital into the Middle East where the market outlook remains encouraging.
“The first half has seen an encouraging improvement in both revenues and margins,” said Lavendon Group chief executive Don Kenny. “Whilst mindful of the continuing economic uncertainties, it is likely, given the Group’s current performance, that our results for the year will be ahead of the board’s previous expectations.”
Lavendon, which has operations in the U.K., Germany, Belgium, France, Saudi Arabia, the United Arab Emirates, Bahrain, Oman and Qatar, will announce its official first-half results Aug. 31.
