Watch this Share21 Sep 2010 22:55
This share is one to watch and that's why I bought a few.
Most rental companies recorded very poor results for the first half of 2010 through poor trading conditions as well as very bad weather.
The share price values the company at about half of its balance sheet value.
Many of their competitors are experiencing good fleet utilisation and improving hire rates right now but Lavendon need to take total control of their sales people and become leaders. Much of their poor performance is down to themselves.
Their average fleet age is quite old and to replace this equipment will cost considerably more than it did some 8 or 9 years ago. All manufacturers are raising their prices and will do so as the price of steel and other raw materials grows. Their hire rates and returns need to go up now otherwise all the consolidation of the past 2 years will have been wasted.