U.K. Aerial Specialist Lavendon Improves First Half Profitability
Lavendon, U.K.-based aerial work platform rental specialist grew total revenue for the first six months of 2015 by 3 percent on a constant currency basis, excluding used equipment sales, according to a trading update the company issued. Rental revenue grew 1 percent, with 8-percent growth in its Middle East operations and 2 percent in continental Europe. U.K. operations declined 2 percent in rental revenue.
However, profitability, margins and return on capital improved in Lavendon’s U.K. operations in the first half as a result of a more favorable mix of machines on rent and better pricing, thus broadly mitigating lower volumes. Higher volumes in the Middle East drove strong revenue growth, delivering improvements in profitability and margins. The company continues to have a positive outlook for prospects in the Middle East.
The company posted 14 percent revenue growth in France, along with 2 percent growth in Germany, more than offsetting an anticipated revenue decline in Belgium of about 7 percent.
Lavendon said it will continue increasing fleet levels, particularly in the U.K. and the Middle East.
“The Group’s trading performance has progressively improved across the first half, with modest growth in overall Group revenues and continuing operational improvements driving further increases in profitability and margins,” said Lavendon chief executive Don Kenny. “The board remains confident of delivering further progress during the current year. Furthermore, to build on this momentum, we are accelerating the investment in our fleet over the finals months of this year to ensure we are well placed to respond to improving market conditions as we move into 2016.”
Lavendon, based in Lutterworth, Leicestershire, U.K., has operations in the U.K., Germany, Belgium, France, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
