LONDON (Alliance News) - Equipment rental company Lavendon Group PLC on Thursday said it remains confident on meeting its expectations for 2016 as revenue increased significantly in the first quarter.
Lavendon said total revenue for the three months to the end of March was up 13%, with rental revenue rising 9.0% year-on-year. Lavendon said margins have been squeezed in the quarter by its ongoing investment plan, but it expects this to level out over the course of 2016.
UK rental revenue increased 6.0% in the quarter year-on-year, with further improvements in Lavendon's revenue mix and good volume growth. Middle East rental revenue rose 21% thanks to increased utilisation of an enlarged fleet in the region.
Continental Europe rental revenue grew 3.0% in the quarter, with good volume growth in France and Belgium offsetting a weaker performance in Germany.
"Building on the momentum established towards the end of 2015, we have seen an encouraging start to the year with our continued focus on revenue growth delivering results," said Lavendon Chief Executive Don Kenny.
Lavendon shares were up 2.8% to 138.80 pence early Thursday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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