LVD.L Regulatory News (LVD)

25 Apr 2007 07:03

Lavendon Group PLC25 April 2007 LAVENDON GROUP PLC AGM STATEMENT - TRADING UPDATE Lavendon Group plc, Europe's market leader in the rental of powered accessequipment, will give the following trading update at the Company's AnnualGeneral Meeting to be held at 10.30am this morning:- "The Group's revenues for the first quarter have increased by 52% compared withthe same period last year, reflecting both organic growth and the acquisitionscompleted in 2006. During the first quarter, the Group has benefited from therelatively mild weather across Europe, which has accelerated the progress of anumber of construction projects thereby strengthening the levels of demand inour main markets, in what is, traditionally, our weakest quarter. In the UK, overall revenues have increased by 28%, including a like for likeimprovement of 11.0%, and operating margins have continued to improve across thebusiness. The acquisition of Rise Hire Limited, announced this morning, willcontribute to the performance of the business for the remainder of the year. The recovery in the German market has strengthened during the first quarter.Revenues have increased by 150% over the same period last year as a result oflike for like organic growth of 20% and the acquisition of Gardemann, which wascompleted in December 2006. This strong revenue growth has enabled the businessto improve its margins substantially and has accelerated its return toprofitability. Whilst French revenues have, as anticipated, declined by 8%, following arestructure of the depot network, further progress has been made in reducing itsoperating losses. In Spain, revenues have increased by 39%, with a corresponding strongimprovement in operating margins. Demand levels remain buoyant in the Middle East, where revenues have increasedby 90%, resulting partly from improved sales of equipment in the period, andmargins have improved as the "drag effect" of the costs required to makestep-changes in the business reduces. The Group's debt levels remain comfortable and are well supported by strongoperational cash flows. The Group has made a strong start to the year and our performance is well aheadof our earlier expectations. We are confident that we will be able to reportfurther progress in the coming months." 25 April 2007 For further information please contact: Lavendon Group plc 01455 558874Kevin Appleton, Chief ExecutiveAlan Merrell, Group Finance Director Weber Shandwick Financial 020 7067 0700Terry Garrett / Nick Dibden / Georgia Dempsey This information is provided by RNS The company news service from the London Stock Exchange