LVD.L Regulatory News (LVD)

20 Dec 2007 07:01

Lavendon Group PLC20 December 2007 20th December 2007 LAVENDON GROUP PLC ("LAVENDON" or the "GROUP") PRE-CLOSE TRADING UPDATE Lavendon Group plc, Europe's market leader in the rental of powered accessequipment, is today making its pre-close trading update in respect of the elevenmonths ending 30 November 2007. Trading Update The Group has traded strongly in the second half of the year, enabling revenuesfor the first eleven months to increase by 49% compared with the same periodlast year, reflecting both organic growth and the acquisitions completed in 2006and 2007. Group operating margins have improved significantly during thisperiod. Revenues in the UK have increased by 31% over 2006, including a like for likeimprovement of 11.5%, and operating margins have improved across the business. In Germany, revenues have increased by 123% over the same period last year as aresult of like for like organic growth of 14% and the acquisition of Gardemann.This revenue growth has led to a significant improvement in profitability andmargins. Growth in the Middle East operation remains very strong (despite a fall in thevalue of local currencies, which are pegged to the US dollar, of around 8%compared to last year) both for the sale and rental of equipment, delivering a71% increase in revenues, with margins remaining very healthy. As reported during the year, French revenues have declined by 7% over 2006, butprogress has continued to be made in reducing its operating losses. The recentacquisition of DK Rental France is now expected to accelerate the combinedFrench business towards profitability and delivering acceptable returns oninvestment. We will also benefit from one month's trading contribution from DKRental Belgium in December 2007. In Spain, revenues have increased by 37%, including one month's contributionfrom DK Rental Spain, and operating margins have increased strongly. As anticipated, debt levels have increased following the completion of theacquisition of the DK Rental businesses, and remain well supported by strongoperational cash flows. The Group's performance during 2007 has been strong, and is set to be ahead ofthe Board's earlier expectations. We are encouraged by the momentum we arecarrying into next year and remain confident that the Group will make furthersignificant progress in 2008. ends For further information please contact: Kevin Appleton, CEO 01455 206 744 Alan Merrell, FD Lavendon Group PLC Jonathon Brill / Billy Clegg / Caroline Stewart, 020 7831 3113 Financial Dynamics This information is provided by RNS The company news service from the London Stock Exchange