Sign In
12 Jul 2012 07:00
ο»Ώ
12 July 2012
Β
Lavendon Group plc
Β
First Half Trading Update
Β
Performance ahead of expectations
Β
Lavendon Group plc ("the Group"), the market leader in the rental of powered access equipment in Europe and the Middle East, today issues the following trading update for the six months ended 30 June 2012.
Β
The Group performed ahead of the Board's expectations in the first six months, with overall revenues, on a constant currency basis and excluding ex-fleet equipment sales, growing by 6% compared with the prior year, with one percentage point of this growth being derived from new equipment sales. In the second quarter, Group revenues increased by 5% compared with 2011 on the same basis.
Β
Our market leading UK business delivered revenue growth in the second quarter, with pricing improvements continuing to compensate for lower year on year volumes. In Germany, revenues declined in the second quarter due to the more disruptive timing of public holidays in the month of May this year than in 2011; however the business returned to year on year revenue growth in June and it will continue, as planned, to realign its business strategy over the balance of the year. Although our businesses in Belgium and France were also disrupted by the timing of public holidays, their revenues continued to make year on year progress, particularly in France, as they absorbed the fleet redeployed from Spain at the end of last year. In the Middle East, we have supported our strong market position with additional planned fleet investment that has facilitated a further acceleration in the rate of year on year revenue growth in the region. The Group's rental revenue growth rates for the first half by quarter are given below:
Β
Β Β Β Β Β Β Territory | Β Β Contribution to Total Group Rental Revenues | Β Β Q1 2012 Rental Revenue Growth Y-O-Y | Β Β Q2 2012 Rental Revenue Growth Y-O-Y | Β Β H1 2012 Rental Revenue Growth Β Y-O-Y |
UK | 48% | 1% | 1% | 1% |
Germany | 21% | 1% | (5%) | (2%) |
Belgium | 7% | 3% | 2% | 3% |
France | 9% | 27% | 11% | 19% |
Middle East | 15% | 28% | 33% | 30% |
Group | 100% | 6% | 4% | 5% |
Percentages shown are on a constant currency basis and are rental revenues only excluding revenues
from the sale of new and ex-fleet equipment
Β
The combination of revenue growth across the first half and our ongoing programme to improve our operational and capital efficiency, has enabled the Group to make continued good progress in improving profitability, margins and returns on capital employed (ROCE). A reduction in the level of capital deployed in our German business has been a particular area of focus, and is being addressed through the ongoing disposal of surplus equipment as part of our wider performance improvement plan for the business. We have also deployed additional capital into the Middle East as the market outlook remains encouraging, and we believe the attractive returns available should enable the region to become an even more important contributor to the Group's performance in the near term.
Β
The Group's net debt level has reduced as planned and, at 30 June 2012, on a constant currency basis with the previous year-end, stood at Β£101 million, a reduction of Β£5 million in the six month period. After reflecting actual exchange rates, the Group's reported net debt position at 30 June 2012 was Β£98 million, a reduction of Β£8 million. In the second half of the year, and subject to movement in exchange rates, we do not expect any material movement in net debt levels, as the Group's cash flows will be used to fund our previously announced investment plans for the year.
Β
Don Kenny, Chief Executive of Lavendon Group plc, commented:
Β
"The first half has seen an encouraging improvement in both revenues and margins. Whilst mindful of the continuing economic uncertainties, it is likely, given the Group's current performance, that our results for the year will be ahead of the Board's previous expectations."
Β
The Group will announce its First Half results for the six months ended 30 June 2012 on 31 August 2012.
Β
Ends
Β
Conference call
A conference call will be held for analysts at 8.30am (UK time) today (12 July 2012), the details of which can be obtained from FTI Consulting. A replay of the call will be available on the company's website after the event at www.lavendongroup.com.
Β
Β
For further information, please contact:
Lavendon | ||
Don Kenny, Chief Executive Alan Merrell, Group Finance Director | Tel: +44 (0)1455 206 736 | |
Β FTI Consulting | ||
Jonathon Brill Alex Beagley | Tel: +44 (0)207 831 3113 |
Β
Notes to Editors
Lavendon Group is the European and Middle East market leader in the rental of powered access equipment. The quality of diversity of its hire fleet, coupled with the professionalism and accessibility of its depot network, provides an exceptional product range for customers.
Β
Powered access equipment is designed to enable people to work safely, productively and comfortably at height. It can be used in a comprehensive range of applications, both inside and outside buildings and structures.
Β
The Group has operations in the United Kingdom, Germany, Belgium, France, Saudi Arabia, the United Arab Emirates, Bahrain, Oman and Qatar. The equipment fleet totals almost 20,000 units and the Group employs over 1,600 people.
Follow the stocks
