LONDON (Alliance News) - Equipment rental company Lavendon Group PLC on Thursday said it remains confident on its outlook for 2015 as it saw a continued improvement in profit, margins and its return on capital employed in the first half.
Lavendon said it saw strong rental revenue growth in the Middle East in the first half, up 8%, and a good performance in France, which pushed its Continental Europe revenue up by 2% in the period, boosted by a 4% rise in the second quarter.
In the UK, Lavendon said its rental revenue performance has continued to improve, with a decline of 2% posted for the first half but a decline of only 1% in the second quarter, after a 3% fall in the first.
Total group rental revenue in the first half was 1%, though this did improve to 2% in the second quarter.
"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 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 final months of this year to ensure we are well placed to respond to improving market conditions as we move into 2016," Kenny added.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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