LVD tipped on Yahoo/Motley Fool26 Aug 2016 16:27
Https://uk.finance.yahoo.com/news/buy-climbers-today-results-104049339.html
"Power profits
Lavendon Group (LSE: LVD) shares have been in a bad patch, losing nearly half their value since March 2014. But they've been creeping back in anticipation of today's interims from the supplier of powered access equipment, and are up a very nice 8.5% to 136p on the day.
We saw double-digit rises in underlying figures across the board, with revenue up 13%, pre-tax profit up 10%, earnings per share up 12%, and the halfway dividend got an 18% boost. It was nice, for a change, to see a company report not warning about post-referendum uncertainty -- Lavendon does get some of its business from EU countries, but around half comes from the UK and it's big in Africa and the Middle East.
A rise in net debt to £149.7m (from £119.9m) does concern me, though the company says that reflects its investment programme over the half. Still, such a high level compared to annual revenue does take a bit of the shine off an otherwise very low forward P/E of 7.3 this year, rising a little to 7.5 for 2017.
But on the plus side, in addition to that lowly P/E, we're seeing 4.3% and 4.5% dividend yields forecast for this year and next, which would be more than three times covered by earnings. Lavendon is also a strongly cash-generative business, which is a good indicator that it should be able to handle its debt level. I'm inclined toward bullishness on Lavendon, and I can see the shares continuing their recovery over the next couple of years."