The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
This stock is so completely static! What is the Board doing about generating some interest in our business?
Copied from the Vertikal website: Genie has agreed a licensing deal with Lavendon for its SkySiren electronic secondary guarding solution for boom lifts. The Genie version of the system will be launched today at the Rental Show in Orlando Florida. The system comprises a bar switch installed along the front of the control box at waist height, which cuts the lift functions when tripped should the operator press against it and warns those below with a siren and flashing beacon. A reset button can be pressed if the system is inadvertently activated.
in today's Investors Chronicle has probably helped
....finally twigged today as to where LVD is headed? Nice breakout.
Lovely breakout and very strong momentum........ http://mycharts1.webs.com/lavendon%201.JPG
The recent government investment announcement in large construction projects, fall nicely for Lavendon in the UK. I predict an improved outlook for the second half of the year.
When is the next return?
Lvd is a positive mover for me as they appear very strong in the middle east and this must be the growth area for the groups investment. The paying down of debt is also encouraging although less positive is the lack of investment from the board and the recent selling of shares. Come on LVD let's see you break the 190 mark now..
Moving up on the run up to results IMO "The board therefore expects the group's results for 2012 to be at the upper end of its expectations, and looks forward to making further progress in 2013."
1 mill trades...x2.....
"The board therefore expects the group's results for 2012 to be at the upper end of its expectations, and looks forward to making further progress in 2013."
Lavendon, which rents out aerial work platforms in western Europe and the Gulf States, rose strongly after it said full year results would be at the upper end of its expectations. The group's total revenues for the year ended December 31st 2012 were up 4% on the previous year on a constant currency basis and excluding ex-fleet equipment sales. In the fourth quarter, revenues rose by 4% compared with 2011. In the UK, the firm's biggest market, rent revenues were flat across the year, while its second biggest market, Germany, saw rents drop by 6%. France delivered a strong performance, with 17% revenue growth, while the Middle East registered growth of 35% supported by additional fleet investment in the fourth quarter. "The encouraging growth we are seeing in our French and Middle East businesses, together with the actions we have taken to improve our overall operational and capital efficiencies are delivering improvements in the group's profitability, margins and return on capital employed," said Chief Executive Don Kenny.
here we go..lol..
1mill big trade just in the vault......
Broker comment Broker N+1 Singer remains upbeat and reiterated its 'buy' recommendation and 185p price target. Analyst James Woodrow, commented: "Lavendon continues to make good progress in delivering improvements in margins and return on capital employed. Encouragingly, the Middle East is continuing to deliver strong growth which should have a disproportionately positive impact on profits as revenue grows and helps to offset any weakness in the European businesses, in our view. We continue to believe the combination of Middle East growth and self-help offers significant upside for investors."
Lavendon said full year results will be in line with expectations, although trading is getting tougher in some of its key markets, as borne out by slightly weaker results for the third quarter. Don Kenny, Chief Executive of Lavendon, said: "Trading in the year to date has been as expected, and whilst mindful of the continuing economic uncertainties, the board is confident that the group will deliver another year of good progress in 2012 with full year results in line with its expectations." However, it is these very economic uncertainties that seem to be impacting trading for the company, which rents out motorised platforms to enable easy access for street lights and buildings. In the UK, its largest market, and Germany, its second largest market, third quarter revenues fell year-on-year by 3% and 11% respectively, on a constant currency basis. For the ten months to October 31st UK revenues grew 1% while German revenues shrank 5%. That worrying trend aside, for the ten months to 31st October 2012 group revenues were ahead of the previous year by 5% on a constant currency basis (there was no mention of what it was on an actual basis). This was driven by growth in the Middle East, which during the ten months to October 31st saw year-on-year rental revenue growth of 32%.
N+1 Singer initiated coverage of Lavendon Group (LVD) with a "buy" recommendation and 185p target price. The broker said that the powered aerial rental company is the largest of its kind in the EMEA region, 50% bigger than its nearest competitor, giving it a substantial advantage. Singer noted that despite its position, the firm has struggled in the past to maximise its return on capital, but believes that the group's new focus will allow it to achieve a ROCE of between 15% and 16% in the medium-term. On the broker's forecasts, the shares trade on a prospective earnings multiple of 11.9 times for the 2012 financial year, falling to 10.4 times in 2013
Powered access equipment rental firm Lavendon has reported revenues and profits significantly ahead of expectations for the first half of 2012 as it seeks to capitalise on its European and Middle East markets. The group is explicit in targeting the return on capital employed metric (ROCE), which rose from 7.9% in the first half of last year to 10% by the end of June this year. "It is our continued aim to drive ROCE to a sustainable level in excess of the cost of capital over the business cycle and we believe the Group is well positioned to achieve this," said Lavendon's Chief Executive Don Kenny. The group's total revenues for the six months to June 30th increased by 8% to £114.5m, reflecting an increase in rental revenues of 4% and a £4.2m increase in the sale of new and ex-rental fleet equipment. Underlying operating profits increased by 31% to £13.6m (2011: £10.4m), with margins improving to 11.9% (2011: 9.8%). Profit before tax came in at £9.5m, 55% ahead of 2011 while the interim dividend has been increased 102% to 0.75p per share. Kenny said that trading "since the half year end has been in line with our expectations and we are well positioned to deliver another year of financial progress and, in the medium term, significant value to our shareholders."
House broker Peel Hunt was predictably upbeat and said the board's confidence that full year results would be better than previously expected was "underpinned by the Middle East performance and the annualised operational efficiency profit improvement of £5m through 2013 (£2.1m secured in 2011)." The broker has upgraded its 2012 profit before tax forecast by £1m to £26.5m. Market consensus prior to Thursday's trading statement was for profit before tax in 2012 of £25.75m.
The firm said: "A reduction in the level of capital deployed in our German business has been a particular area of focus, and is being addressed through the ongoing disposal of surplus equipment as part of our wider performance improvement plan for the business. "We have also deployed additional capital into the Middle East as the market outlook remains encouraging, and we believe the attractive returns available should enable the region to become an even more important contributor to the group's performance in the near term." Group debt at June 30th was £101m, a reduction of £5.0m over the six month period. Broker Northland Capital Partners described the statement as a "strong trading update". "The steady performance in Europe is reassuring considering the economic difficulties currently being experienced. The Middle East should continue to offer growth opportunities as the level of infrastructure spending increases across the region," the broker said.
Equipment rental firm Lavendon Group has performed ahead of its own expectations with revenue growth feeding through to improved profitability, margins and return on capital employed. Overall revenues grew by five per cent in the first half of 2012 compared with the same period of prior year. In the second quarter, group revenues increased by five per cent compared with 2011 on the same basis. Regionally, the UK contributed 48% of total group revenue, up one per cent first half. The Middle East saw the most growth, up 30% over the six months to contribute 15% of total revenue. Rental revenue fell two per cent in Germany, contributing a total of 21%, France grew 19% to contribute nine per cent and Belgium grew three per cent to contribute seven per cent of group revenue. Overall group revenue grew by six per cent in the first quarter and four per cent in the second.
The way the markets are then this will probably be seen initially as negative but ultimately surely its a winner - right I am off to do some pillaging across the border in Carlisle - passport and credit card at the ready. Enjoy your banter in here as usual.
John Standen, acting chief executive of Lavendon Group, can thank his lucky stars that the plant hire company he finds himself running today is not heavily involved in Greece or Portugal as well. As it is, Lavendon has taken the inevitable decision to cut its losses and run from Spain. Mr Standen wants to raise the return on capital employed, about 7 per cent, to 11 per cent, though this will take several years to achieve. Analysts were raising their forecasts for 2011, but with the shares on more than ten times earnings, further progress looks to be slow, says the Times.
Panmure Gordon upgrades Lavendon Group from hold to buy, target price raised from 105p to 127p.
Singer Capital reiterated its "buy" recommendation for Lavendon (LVD) with a target price of 157p, following continued revenue momentum. Specifically, the broker notes that growth in the groups two largest regions, UK and Germany, was up 10% on overall growth of 8%. Singer also says that if the powered aerial work platform provider maintains this momentum it should exceed expectations of 20 million pounds in pre-tax profits for the full year. Shares in Lavendon gained 4.9p to 108.4p.