LVD.L Regulatory News (LVD)

17 November 2011

Lavendon Group plc

Interim Management Statement

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 interim management statement for the period to 16 November 2011:

"The Group's overall revenues for the nine months to 30 September 2011, on a constant currency basis (excluding ex-fleet equipment sales and the Group's discontinued Spanish business), increased by 8% compared with the prior year. In the third quarter, Group revenues increased by 7% compared with 2010 on the same basis.

During the third quarter, revenues from our UK and continental European businesses have continued the trend of growth over 2010, albeit at a lesser rate than in previous quarters due to progressively stronger comparatives. In the Middle East, despite demand patterns remaining somewhat unpredictable, the rate of rental revenue growth over the prior year has increased, driven primarily by the continued recovery in the Abu Dhabi and Saudi Arabian markets. A comparison of the revenue growth rates across the Group's markets by quarter is given below.

Percentages shown are on a constant currency basis and exclude revenues from the Group's Spanish business, which is in

the process of closing and which will be reported as a 'discontinued business' at the year end

The rate of overall revenue growth to date, together with the benefits being derived from our actions to enhance operational and capital efficiency, is delivering the expected improvement in the Group's profitability, margins and return on capital employed. We anticipate further progress in these key metrics in the coming months, as our plans to realign our German business and redeploy our Spanish fleet gather momentum.

Since the half-year, the Group's net debt level has continued to reduce and as at 31 October 2011, following the acquisition of Blue Sky Access for an initial consideration of £3.4 million, stood at £124.3 million (compared to £140.3 million at the previous year-end). We expect this debt level to reduce further over the remainder of the financial year.

Trading in the fourth quarter to date has been in line with our expectations, and whilst we are alert to the increasing uncertainty in the macro economic climate, the Board believes that the Group will deliver a full year result in line with its expectations."

Ends

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