LVD.L Regulatory News (LVD)

27 February 2014

Lavendon Group plc

Preliminary Results

Full Year Results in line with Board's expectations

Lavendon Group plc ("the Group"), the market leader in the rental of powered access equipment in Europe and the Middle East, today announces its preliminary results for the year ended 31 December 2013.

Notes

(i) Underlying results stated before amortisation charges, exceptional items and movements in the fair value offinancial derivatives

(ii) Underlying and statutory measures are the same

· Strong rental revenue growth in Middle East & France

· Improving UK revenue trend

· German progress disrupted while restructuring plan completed

· Delivered operational efficiencies of £5.2m over the last three years; ahead of expectations

· Underlying operating profits increased to £35.3m, with margins stable at 14.9%

· Underlying PBT increased by 9% to £30.0m

· Underlying EPS increased by 12% to 14.42p

· Marginal 10bps decline in ROCE to 10.6%

· Significant fleet investment, funded from annual cash flows with net debt stable

· Full year dividend up 29% to 3.55p, reflecting Board's confidence in Group's future

Don Kenny, Chief Executive of Lavendon Group plc said:

"The Group made further good progress during 2013, delivering results in line with our expectations. Our decision to deploy capital into those markets that offer superior growth opportunities and the successful implementation of our three year operational efficiency plan has continued to drive strong growth in our earnings. The proposed increase in our dividend reflects both our strong cash flows and the Board's confidence in the Group's future.

"With the first signs of improving market conditions emerging in the UK, our primary focus is on revenue growth in our key markets. With a more efficient business model established, we are well placed to drive revenues and deliver further earnings growth and improvement in our ROCE.

"Trading since the year end has been in line with the Board's expectations, and we believe the Group is well positioned to deliver another year of financial progress and substantial shareholder value over the medium term."

A meeting for investors and analysts will be held today at 10.15am at the offices of FTI Consulting, Holborn Gate, 26 Southampton Buildings, London WC2A 1PB. A copy of the presentation and audio webcast will be available at www.lavendongroup.com later today.

For further information please contact:

Lavendon Group plc

Don Kenny, Group Chief Executive Today T: +44(0)207 831 3113

Alan Merrell, Group Finance Director Thereafter T: +44(0)1455 558 874

FTI Consulting

Jonathon Brill/ Alex Beagley T: +44(0)207 831 3113

Next Trading Update

The Group's next scheduled announcement of financial information will be its first quarter Interim Management Statement on 17 April 2014.

Notes to Editors

Lavendon Group is the European and Middle East market leader in the rental of powered access equipment. The quality and diversity of its hire fleet, coupled with the professionalism and accessibility of its depot network, provides an exceptional product range for customers.

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.

The Group has operations in the United Kingdom, Germany, Belgium, France, Bahrain, India, Kuwait, Oman, Qatar, Saudi Arabia, the United Arab Emirates. The equipment fleet totals over 20,000 units and the Group employs almost 1,650 people.

CHAIRMAN'S STATEMENT

The Group has made further good progress during 2013, delivering results in line with the Board's expectations for the year.

This performance reflects the benefits of our strategic decisions to deploy capital in those markets that offer superior growth opportunities, amplifying our geographic diversity, and to implement a three year plan to improve operational efficiency. As a result, we have mitigated both the impact of the continued economic headwinds in Europe during the year and the unusual severity of the winter months at the start of 2013. With revenues marginally ahead over the year, our margins were stable and our interest charge reduced, improving our profitability and driving strong growth in earnings.

As planned, a substantial investment programme was undertaken during the year, predominantly directed at expanding our businesses in France and the Middle East to meet growing demand and at the continued refreshment of our European rental fleet to support our strong market positions. This investment was fully funded from our annual cash flows and illustrates the strong cash generation capabilities and robust capital structure that the Group has developed.

As previously reported, our return on capital employed ("ROCE") showed a marginal 10bps decline in the year, principally due to a weaker than expected trading performance from our UK business. We have taken steps to address this within the UK, strengthening the organisational structure and management team, and we are pleased to see these measures are starting to deliver the required performance improvement. We remain confident that the Group's ROCE can be further improved, in order to meet our strategic target of being above its pre-tax weighted average cost of capital of 11% across the business cycle.

Over the past three years, the Group's capabilities have been significantly enhanced through successfully implementing our operational and capital efficiency programmes. Whilst we will continue to seek greater efficiency within our business and are targeting further operational improvements, our strategic focus is now on the delivery of revenue growth in our key markets. We are confident that growth in revenues derived from our strong market positions and differentiated services, when combined with our improved operational leverage and self-funded investment, will deliver substantial shareholder value over the medium term.

Return on Capital Employed

The Group's ROCE was 10.6% for the year (2012: 10.7%). The calculation of ROCE is based on the Group's operating profit before exceptional items for 2013 and the average of the opening and closing capital employed for the year of £300.8 million (2012: £292.5 million).

Dividend

Given the continued improvement in the Group's financial performance and strong cash flows, the Board is proposing a final dividend of 2.40 pence per share, making a total dividend for the year of 3.55 pence; an increase of 29% over the previous year (2012: total dividend of 2.75 pence). The final dividend, if approved, will be paid on 30 April 2014 to shareholders on the register at the close of business on 7 March 2014.

The proposed increase in the dividend for the year again reflects the Board's confidence in the Group's future and the continued recognition that dividends are an important means of delivering shareholder value. Dividend cover, based on the proposed total dividend for 2013 and underlying earnings per share, has been reduced to 4.0 times (2012: 4.7 times), in line with our previously stated intention to increase dividend distributions to a level that is covered three to four times by earnings. Our dividend cover will be balanced against the Group's investment needs and funding requirements as we continue to move through the business cycle.

Operational and Capital Efficiency Programmes

Our three year programme to improve the Group's operational and capital efficiency has been successfully concluded, delivering an annualised benefit ahead of our expectations of £5.2 million by the end of 2013. These gains were secured through the combination of better asset utilisation and pricing, more efficient transport, sales resource realignment and improved procurement of goods and services. An additional phase of operational improvements has been scoped and a target of an annualised £1.5 million has been set to be delivered by the end of 2016. It is expected that these savings will be primarily derived through further efficiency from within our transport network and procurement activity. The delivery of these benefits will be managed through our cycle of continuous improvement, as we seek greater operational leverage within our business model.

The effective deployment of capital remains central to the Group's strategy to improve ROCE, strengthening market positions and supporting growth opportunities where incremental returns are attractive. During the year additional capital was deployed in France and the Middle East, as fleets were expanded to meet growing demand, and we expect to invest further in these businesses in 2014. Utilisation of the Group's existing fleet capacity was again improved during the year, reflecting better process management and increased availability through more efficient maintenance programmes. The Group's new IT platform now covers almost 85% of the Group's revenues and, with the initial teething issues in Germany now fully resolved, is providing an enhanced capability to drive asset utilisation and returns through improved visibility and functionality. The ability to improve returns from our existing fleet, before allocating additional capital, is an important factor that can augment our financial returns as market conditions improve.

Financial Results

The Group's total revenue for the year increased by 1% to £237.5 million (2012: £234.6 million), with rental revenues increasing by 2% to £225.3 million (2012: £220.7 million) and revenues from the sale of new and ex-rental fleet equipment declining by £1.7 million.

Underlying operating profits increased by 1% to £35.3 million (2012: £35.0 million), while margins were stable at 14.9%. With underlying net interest costs reducing to £5.3 million during the year (2012: £7.4 million), the Group's underlying profit before tax increased by 9% to £30.0 million (2012: £27.6 million). This increase in profitability, combined with a reduced effective tax rate of 20% (2012: 23%), generated an underlying profit after tax of £24.1 million (2012: £21.2 million) and a 12% increase in underlying earnings per share to 14.42 pence (2012: 12.83 pence).

Amortisation charges in the year reduced to £3.3 million (2012: £3.8 million), and an exceptional charge of £3.3 million was incurred (2012: £3.6 million) relating principally to the completion of the restructuring exercise within our German business. After amortisation charges and exceptional items, the Group's operating profit was £28.7 million (2012: £29.7 million). The Group's profit before tax was £23.4 million (2012: £20.8 million) and the Group's profit after tax was £19.1 million (2012: £16.2 million), with earnings per share of 11.41 pence (2012: 9.80 pence).

Using exchange rates consistent with 2012, the Group's total revenues for the year declined by 1% to £233.2 million (2012: £234.6 million), with underlying operating profits at £34.7 million (2012: £35.0 million). Underlying profit before tax increased to £29.4 million (2012: £27.6 million), while underlying

profit after tax increased to £23.7 million (2012: £21.2 million), with underlying earnings per share increasing to 14.16 pence (2012: 12.83 pence).

Cash Flow

Underlying earnings before interest, tax, depreciation and amortisation ("EBITDA") increased to £76.2 million (2012: £75.6 million), with margins stable at 32.1% (2012: 32.2%). Although the Group's fleet investment programme in the year increased the net cash outflow relating to the purchase and sale of rental fleet assets to £39.9 million (2012: £25.4 million), the Group still generated a healthy £25.5 million from operations (2012: £39.7 million). Net cash generated from operating activities, after payment of interest and tax, was £12.3 million (2012: £21.2 million).

Investment

As planned, the Group increased its level of capital expenditure for 2013 with a total of £55.1 million invested in the Group's rental fleet and operational infrastructure (2012: £47.9 million). This was partly funded by the disposal of surplus or retired assets which generated £10.5 million (2012: £11.1 million). After reflecting movements in amounts owing to equipment suppliers at the beginning and end of the year, this activity resulted in a net cash outflow relating to capital expenditure of £44.9 million (2012: £29.8 million), which was fully funded from annual operating cash flows. In 2014, it is

planned to undertake an investment programme of similar size to 2013, again funded through annual operating cash flows.

The investment programme undertaken in the year has replaced approximately 7% of the Group's rental fleet, expanded the French and Middle East fleets to meet growing demand, increased the availability of our BlueSky range of machine attachments and improved our operational infrastructure. The overall impact of our fleet investment and disposal programme has been a net increase in the Group's total fleet size of around 700 units to 20,600 machines by the year end, and a reduction in the average age of our fleet to 7.1 years (2012: 7.3 years).

Net Debt

The strength of the Group's operating cash flows absorbed the planned increase in the capital expenditure programme for 2013, and consequently, despite an adverse foreign exchange movement of £1.6 million, the Group's net debt at the year end of £97.7 million remained broadly in line with the £97.3 million at the end of 2012. Adjusting for the unamortised costs of £0.7 million relating to the Group's US Private Placement, the Group's reported net debt at 31 December 2013 was £97.0 million (2012: £96.5 million). The corresponding debt to equity ratio improved to 46% (2012: 49%), and the net debt to pre-exceptional EBITDA ratio (calculated on a rolling 12 month basis) reduced marginally to 1.27 times (2012: 1.28 times). The Group is operating well within its banking covenants and has significant liquidity available from its combined financing facilities.

Board Changes

As the Group moves into the next stage of its development, the Board have recognised the need to refresh its composition and add a wider breadth of skills and experience. Consequently with effect from 1 March 2014, we have appointed John Coghlan and John Wyatt as Non Executive Directors.

Jan Åstrand, who has been a Non-Executive Director of the Group since 2010, has resigned from the Board with effect of 26 February 2014. I would like to take this opportunity to thank Jan for his advice and contribution to the Board over the past three years. Andrew Wood will replace Jan as the Group's Senior Independent Director and John Coghlan will become Chairman of the Group's Remuneration Committee.

Summary and Outlook

During 2013, the Group's profitability continued to improve as strong revenue growth from our French and Middle East businesses was combined with the successful completion of our three year efficiency improvement programme. The restructuring exercise in our German business has been completed and action has been taken to address a disappointing performance from our UK business in the year; the benefits of these measures are beginning to be seen.

The strength of the Group's cash flows fully funded a substantial investment programme in the year, supporting the expansion of our French and Middle East businesses while at the same time enabling our extensive refreshment plans for our European fleet to continue apace. This ability to internally fund our annual fleet replacement requirements while supporting growth opportunities with investment, is a key attribute of the Group going forward as we seek ever greater returns from our deployed capital base.

The Board believes that the necessary measures are in place to enable ROCE, our key performance metric, to be increased above the Group's weighted average cost of capital over the business cycle. The efficiency gains secured over the past three years are embedded within our business model, and the improved operating leverage that these provide will be further enhanced by the additional operational improvements now being targeted. The momentum that has been created within the business to date, through our efficiency and selective expansion programmes, is yet to benefit appreciably from any cyclical recovery in our European markets. As we move into 2014, with the first signs of improving market conditions emerging in the UK and a more efficient business model established, we are well positioned to drive revenue growth within our business and deliver increased profitability.

Trading since the year end is in line with our expectations and has not been disrupted by a pro-longed period of adverse weather to date. The Board believes the Group is well positioned to deliver continued financial progress this year and substantial shareholder value over the medium term.

Review of performance by country

A summary of the revenues and underlying operating profit by each business unit is given below:-

All figures shown in the above table are before amortisation charges, exceptional items and movements in the fair value of financial derivatives.

We have structured the Group so that each region of operation is viewed as a separate reporting profit centre, supported by central Group service functions. Each operation has its own management team responsible for delivering agreed performance targets.

The performance of each operation is summarised below, with all financial figures being underlying numbers stated before amortisation charges, exceptional items and movements in the fair value of financial derivatives. Where revenues and revenue growth percentages are given, they relate to rental revenues only and exclude revenues derived from the sale of new and ex-rental fleet equipment. The split of revenues by country between rental revenues and revenues from the sale of new and ex-rental fleet equipment is given in the 'Segmental Analysis'.

UK

The UK's rental revenue declined by 4% in the year to £103.4 million (2012: £107.7 million). This revenue decline was weighted towards the first half of the year, reflecting the adverse weather at the start of 2013, with the trend progressively improving through the year. Volumes were consistently ahead of those in 2012, and pricing, which had shown some weakness in the first six months, strengthened over the second half, following targeted management actions, to show year on year improvement as the business moved into 2014.

During the year, we saw our mix of fleet on hire shift towards smaller units with a consequential impact on the rate of revenue per hire. This was a reflection of the stage of the construction cycle of a number of major projects during the year; an influence that is now diminishing.

We continue to develop our BlueSky products and services, improving efficiency and safety for customers, and believe that being recognised as a provider of value adding services and not just a supplier of rental equipment gives us an important point of differentiation in the market-place. A further 10% of our rental fleet was replaced with new equipment during the year, improving the fleet mix and capacity to generate increased revenues. In the second half of the year, the UK management team was strengthened and the business was restructured to better align its sales process with our customers and make it more locally accountable.

It is encouraging to note that the impact of the £4.3 million decline in the UK's revenues was mitigated in part by the improved operational efficiencies delivered over the past three years, such that underlying operating profits only reduced by £2.6 million to £16.5 million (2012: £19.1 million) with margins declining to 15.0% (2012: 16.6%).

The combination of a differentiated service offering, a well invested fleet and a more effective organisational structure, positions the UK business well in a market which is starting to demonstrate cyclical recovery.

Germany

German Euro rental revenues declined by 7% over 2012, which once converted to sterling, showed a decline of 2% to £42.5 million (2012: £43.5 million).

Overall trading conditions are yet to show any sustainable recovery in demand, particularly from the industrial and commercial construction sectors. Our volumes in the year reflected this market environment, and were broadly flat against 2012, with a pricing strategy to ensure volumes quickly recovered following the weather affected start to 2013 and that our market share position was maintained throughout the year.

The German business completed its restructuring plan during the year, concluding with the implementation of the Group's new IT platform. The ability to drive revenues has been disrupted while the restructuring exercise was completed, and initial teething issues with the new IT platform resolved. Disappointingly this disruption has partially reversed the progress being made in improving the business's ROCE. However, a firm foundation has now been established, with a more efficient cost structure and a better capability to drive fleet utilisation and yields. This will support our clear focus on driving revenue growth as the business moves through 2014.

Underlying operating profits declined to £3.8 million (2012: £5.0 million) with margins at 8.5% from 10.5% in 2012.

France

Our French business again grew strongly in 2013, with Euro rental revenues increasing by 7%, which once converted to sterling, showed an increase of 12% to £21.5 million (2012: £19.2 million).

This revenue performance has been driven by increased utilisation of an expanded fleet and reduced pricing pressure towards the end of the year. Our growth is in contrast to relatively weak market conditions throughout the year, underpinning our belief that we continue to increase our market share.

During the year, we invested additional resources within the business to support the expected growth in revenues over 2013, which in the first half constrained the reported level of improvement in our margins. However, as the business moved through the second half of the year, the revenue growth absorbed the cost of these additional resources and underlying operating profits increased to £3.2 million (2012: £2.7 million), with margins improving to 14.5% (2012: 13.7%).

Additional capital will be allocated to our French business in 2014 to continue supporting our growth ambitions in this market.

Belgium

Belgian Euro rental revenues declined by 6% in the year, which once converted to sterling, showed a decline of 1% to £13.8 million (2012: £14.0 million). This revenue decline was heavily weighted towards the first half of the year, with the second half performance steadily reversing the trend through significantly increased utilisation levels.

Trading conditions remain difficult in the market, with pricing pressures continuing to influence competitive behaviour. Our business has concentrated its efforts on maintaining customer service to secure attractive contracts, while at the same time actively managing its fleet size to be more in line with market demand (through transfer to other Group operations or by the disposal of surplus units) and reducing its overhead cost base.

As a result of the actions taken by management, the revenue decline has been fully absorbed and underlying operating profits were increased to £3.0 million (2012: £2.8 million), with margins improving to 19.7% (2012: 18.0%).

Middle East

Revenues from our Middle East business once again grew strongly in the year, with rental revenues (in both local currencies and sterling) increasing by 21% to £44.1 million (2012: £36.3 million).

This performance continues to be driven by a combination of volume growth and pricing improvement, particularly in Saudi Arabia where we have seen a 12% improvement in pricing over the year. We have supported this growth with investment in the fleet, adding c.300 machines over the year, further strengthening our market position in the region.

The outlook for the region continues to be very encouraging, with current and planned infrastructure and construction projects valued in excess of US$ 2.0 trillion. In the short term, progress on projects in our key market of Saudi Arabia has slowed, as the market adjusts to a more onerous regulatory environment which is having a consequential impact on the availability of construction labour. We anticipate that these labour capacity issues will ease during 2014 thereby removing the constraints on project development going forward.

We believe that current activity levels are likely to improve as we move through 2014, and we are committing additional capital to the region in the coming year, to ensure we are well placed to benefit from the growth opportunities that are available across the region. As we have stated previously, the scale of the potential in the region could be significant over the medium term and that this will warrant a further shift of our available capital into the region over time.

As noted in our Interim Results, we established a small operation in India during the first half comprising one depot and a fleet of 120 machines. The business made a marginal profit for the year, and we will continue to develop the operation in response to growth in demand.

The strong revenue growth across the region has increased underlying operating profits for the year to £14.0 million (2012: £10.5 million), with margins improving to 30.7% (2012: 28.3%).

John Standen

Chairman

27 February 2013

(i) Non-underlying is defined as amortisation charges, exceptional items and fair value movements on financial derivatives.

Group statement of comprehensive income

for the year ended 31 December 2013

Notes

With the exception of long term borrowings before deferred issue costs, the carrying value of the Group's financial instruments are considered by the Directors to be materially consistent with their carrying value. Long term borrowings has a carrying value of £114,868,000 (2012: £98,194,000) and a fair value of £121,447,000 (2012: £106,230,000).

2. Segmental analysis

The internal reporting arrangements for Lavendon Group plc comprises of five operating segments based on the geographical locations of UK, Germany, Belgium, France and Middle East and one non operating Corporate cost centre. The Corporate cost centre comprises the Group directorate, statutory compliance and Group functions and holds the Group's bank borrowing facilities.

The Group's chief operating decision maker ("CODM") is the Group Board. The Group Board reviews the Group's internal reporting in order to monitor and assess performance of the operating segments for the purpose of making decisions about allocation of resources. Performance is evaluated based on actual results compared to agreed targets and performance in prior periods.

Note: Inter segment trading has been eliminated in the analysis presented above, so that only trading between the Group and external third parties is represented.

Note

The depreciation charge shown for the Middle East operation includes rental equipment owned by the UK operation for the first half of the year, but which were used by and costed to the Middle East operation. The inclusion of the depreciation charge in the Middle East more accurately reflects the commercial nature of the arrangement and the reporting to the CODM. The associated assets were transferred to the Middle East in June 2012.

Inter segment trading has been eliminated in the analysis presented above, so that only trading between the Group and external third parties is represented.

The assets, liabilities and operating costs associated with BlueSky have been included within Corporate items, as it is believed that this is a more appropriate allocation given its role as a Group function. The 2012 segmental analysis has been restated to reflect this.

3. Exceptional items, amortisation and movement in fair value of financial derivatives

Exceptional items, amortisation and movement in fair value derivatives incurred during the year are set out below:

Notes

 (i) Relates to restructuring costs during the current and previous periods. Costs incurred in the current period principally relate to the completion of the restructuring exercise in Germany, mainly involving depot closure and redundancy.

(ii) Relates to fair value movement of interest rate swaps that were not designated as cash flow hedges.

(iii) Fees incurred on bank refinancing.

4. Earnings per share

Reconciliations of the earnings and weighted average number of shares used in the calculations are set out below:

Earnings per share are calculated on the 167,014,501 weighted average number of ordinary shares in issue for the year ended 31 December 2013 (year ended 31 December 2012: 164,990,033).

Diluted earnings per share assumes conversion of all potential dilutive ordinary shares which arise from share incentive scheme awards granted to employees, where the exercise price is less than the average market price of the Company's ordinary share capital during the year. The effect of this dilution is to increase the weighted average number of ordinary shares to 168,158,046 (year ended 31 December 2012: 169,167,889).

Underlying earnings per share is presented to exclude the impact of amortisation charges, exceptional items and movements in the fair value of financial derivatives in the year and their associated tax effect. The directors believe that underlying earnings per share provides additional relevant information about underlying business performance.

5. Dividend

The directors are proposing a final dividend in respect of the financial year ended 31 December 2013 of 2.40 pence per ordinary share which will distribute an estimated £4,033,000 of shareholders' funds. It will be paid on 30 April 2014 to those shareholders who are on the register at 7 March 2014 subject to approval at the Company's Annual General Meeting.

6. Taxation on profit

Analysis of taxation charge for the year:

The taxation charge on the underlying profit is £5,936,000, (2012: £6,388,000). The taxation credit on amortisation charges, exceptional items and fair value movements on financial derivatives is £1,570,000 (2012: £1,756,000).

In addition to the amount of taxation charged to the income statement, net tax of £55,000 (2012: £555,000) was credited directly to reserves in respect of share based payments. This comprises a current tax credit of £608,000 (2012: £nil) in excess of the amount credited to the income statement in respect of options exercised during the year and a deferred tax charge of £553,000 (2012: £555,000 credit) representing the net reduction (2012: net increase) in the deferred tax asset held in respect of share based payments, which is in excess of the charge (2012: credit) to the income statement.

No provision has been made in the financial statements for any tax liability which may arise upon future distributions of profit to the United Kingdom from overseas subsidiaries.

Reconciliation of taxation

The tax charge for the year is lower (2012: lower) than the standard rate of corporation tax in the UK of 23.25% (2012: 24.50%). The differences are explained below:

The standard rate of corporation tax in the UK changed from 24% to 23% from 1 April 2013. Accordingly, the standard rate of corporation tax applied to the Group's UK profits for the accounting period is 23.25%.

The March 2013 UK Budget Announcement included further proposals to reduce the main rate of corporation tax to 21% from 1 April 2014 and 20% from 1 April 2015. These changes were substantively enacted on 2 July 2013 and are therefore reflected in the deferred tax balances in these financial statements.

7. Property, plant and equipment

for the year ended 31 December 2013

for the year ended 31 December 2012

Fleet disposals are transferred to inventory prior to external sale or being scrapped, and the above disclosure has been represented to better reflect this treatment, as an adjustment from disposals to net transferred to inventories.

8. Basis of preparation

The financial information set out above does not constitute the Company's statutory accounts for the years ended 31 December 2013 or 2012 but is derived from those accounts. Statutory accounts for 2012 have been delivered to the Registrar of Companies, and those for 2013 will be delivered in due course. The auditors have reported on those accounts; their reports were (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006 in respect of the accounts for 2013 or 2012.

The Group financial statements have been prepared in accordance with EU endorsed International Financial Reporting Standards ("IFRS's") and IFRIC interpretations and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The Group financial statements have been prepared, on a going concern basis, on a consistent basis, under the historical cost convention as modified by financial assets and liabilities (including derivative instruments) at fair value through the profit or loss.

The following standards have been adopted by the Group for the first time for the financial year ending 31 December 2013 and have a material impact on the Group:

- Amendment to IAS 1 'Financial statement presentation'

The main change resulting from this amendment is a requirement for entities to group items presented in 'other comprehensive income' on the basis of whether they are potentially reclassable to profit or loss subsequently (reclassification adjustments).

9. Annual General Meeting

The Annual General Meeting of Lavendon Group plc will be held at FTI Consulting, Holborn Gate, 26 Southampton Buildings, London WC2A 1PB on 17 April 2014 at 11.30am.