LONDON (Alliance News) - Equipment rental company Lavendon Group PLC Thursday said it remains confident of meeting its expectations for the full year on the back of a rise in revenue in the first quarter, boosted by strong performances in the Middle East and France but pulled back by a slow start to the year in the UK.
Lavendon said its revenue in the first quarter to the end of March grew 1%. Continental Europe growth was flat, as strong growth in France was offset by weaker performances in Germany and Belgium.
Middle East rental revenue increased 11% in the quarter, however, on the back of higher volumes in the market. Lavendon said the outlook for the Middle East looks positive for the rest of the year and the group is to expand its operations in the region to capitalise on the robust market conditions.
But rental revenue in the UK fell by 3% in the quarter, though the performance in the country improved towards the end of the period and returned to growth in March.
Lavendon said its group profitability, margins and return on capital expenditure continue to improve and it remains confident of meeting its expectations for the year.
Still, its shares were down 2.4% to 169.345 pence on Thursday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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