LVD.L Regulatory News (LVD)

20 Jun 2007 07:01

Lavendon Group PLC20 June 2007 LAVENDON GROUP PLC TRADING UPDATE AND NOTICE OF INVESTOR VISIT TO GERMANY Investor Visit Lavendon Group plc, Europe's market leader in the rental of powered accessequipment, announces that it will be hosting an investor visit to its Germanoperation from 21-22 June 2007. The aim of this visit is to provide investorswith a greater understanding of the German powered access market, theopportunities that the market presents and the progress made in integratingGardemann, acquired in December 2006, with the Group's existing Germanoperation. Due to the timing of this visit, Lavendon is today bringing forward itspre-close trading update in respect of the six months ending 30 June 2007. Trading Update "The Group has continued its strong start to the year with revenues for thefirst five months up 48% compared with the same period last year, reflectingboth organic growth and the EPS enhancing acquisitions completed in 2006 and todate in 2007. Group operating margins have improved significantly during thisperiod. The Board therefore believes results for the period will exceed currentexpectations. Revenues in the UK have increased by 26% over 2006, including a like for likeimprovement of 11.0%, and operating margins have improved across the business.The acquisitions of both Rise Hire Limited and Wizard Workspace Limited, willcontribute to the performance of the business for the remainder of the year. In Germany, revenues have increased by 134% over the same period last year as aresult of like for like organic growth of 18% and the acquisition of Gardemann.The strength of this revenue growth has returned the business to profit, andfurther progress is expected in the seasonally stronger second half of the year. The decline in French revenues, as indicated earlier in the year, has slowed to7% over 2006, and progress continues to be made in reducing its operatinglosses. In Spain, revenues have increased by 33%, with a corresponding strongimprovement in operating margins. Growth in the Middle East operation remains very strong, both for the sale andrental of equipment, resulting in a 83% increase in revenues for the first fivemonths of the year with margins remaining healthy. Debt levels remain comfortable and are well supported by strong operational cashflows. The Group is trading strongly and we are continuing to explore acquisitionopportunities that can further enhance the performance of the Group and increasereturns to our shareholders. We are confident that we will be able to reportfurther progress in the coming months." ends For further information please contact: Kevin Appleton, CEO 01455 206 744Alan Merrell, FDLavendon Group PLC Jonathon Brill / Billy Clegg / Caroline Stewart, 020 7831 3113Financial Dynamics This information is provided by RNS The company news service from the London Stock Exchange