LVD.L Regulatory News (LVD)

20 Dec 2005 07:00

Lavendon Group PLC20 December 2005 20 December 2005 LAVENDON GROUP PLC PRE-CLOSE TRADING UPDATE Lavendon Group plc issues the following trading update for the year ending 31December 2005:- Trading for the year has remained in line with the Board's expectations. Following the Group's restructuring of its German operation and the sale of itsAustrian business, overall operating margins have improved, despite an 8%revenue reduction in the year. From a stable revenue base, UK margins have continued to increase in the secondhalf of the year due to improved revenue quality and operational efficiencies.In Germany, revenues have declined by 25%, but have been more than offset bycost savings from the restructure of the business, thereby allowing an improvedoperational performance to be delivered. Both France and Spain have madeprogress during the year, while in the Middle East, results are solid andprospects remain encouraging for the foreseeable future. The Group's debt levels have continued to reduce in the second half of the year,driven by strong operating cash flows, and now provide the necessary headroom toacquire additional fleet capacity for the UK market. -- ends -- For further information please contact: Lavendon Group plc Tel: 01455 558874Kevin Appleton, Chief ExecutiveAlan Merrell, Group Finance Director Weber Shandwick Square Mile Tel: 020 7067 0700Nick Dibden / Yvonne Alexander This information is provided by RNS The company news service from the London Stock Exchange