27.02.2014
Lavendon lifts profits
International access rental company Lavendon has issued its preliminary results for 2013 which show revenues up just over one percent to £237.5 million as it previously forecast. Pre-tax profits however grew by 12.5 percent to £23.4 million. Net debt remained close to last year’s level of £97.7 million.
Revenue trends and percentage growth by market can be seen in our previous report - see:
No growth for Lavendon.
Chief executive Don Kenny 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."
Vertikal Comment
There are no surprises here underlying trading numbers are close to the statuary results that we report. The returns for shareholders confirms that they made the right decision back in 2011 when they voted to against the sale.
The challenge now as the market picks up is to maintain or boost its position in the UK, which it is well placed to do with demand likely to outstrip supply – while sorting out its German operation without tipping it into a downward spiral, and to see a successful senior management switch in the Middle East.
The next few years could be very positive.
AccessibL
Informative and succinctly put. Thank you.
What makes you think I work for Lavendon?
Nick Leeson
Sorry AccessibL I forgot to answer your question, the shares go ex dividend on 5th March 2014 and shareholders will be paid 2.4p for every share they own on that day, the payment will be made on 30th April 2014 . The current share price is 208.25p so if you invest say £1,000 before the 5th March 2014 you will have approx £11 redirected to you, go on dip your bread, but please remember the value of your investments can go up as well as down.
Nick Leeson
Dear Accessibl
All companies have shareholders and at times they are the people called upon to put money into the company to help it through hard times. Their money is at risk and therefore occasionally they need rewarding with a return or growth, otherwise they wouldn't bother.
If shareholders were to feel negative about Lavendon and considered it not worth investing in the share price would drop. The company could then become vulnerable to a take over, be sold, broken up, costs slashes, redundancies and asset stripped. You could never be certain of what would happen, your job could be at risk. Recently there was a bid when the share price was low and the company could have gone into private hands or absorbed into another competitor.
Lavendon is a public company so there is nothing stopping you buying shares and sharing in the risk or reward. A lot of plc's have an employee share scheme where you can buy at a favourable rate, I would suggest you enquire with the personnel department and hopefully become an owner of your company with a vote.
However on the other hand if you were to work for a private company like most of your competitors there wouldn't be any choice of share ownership, you would just be an employee and rely only on wages.
Most companies in all walks of life have been restrained on wage rises in the last few years. I don't work at Lavendon but I think the company is run ethically, gives a chance for proper career progression, job security, rewards staff quite well and cares about their welfare. The grass is not always greener.
By the way I bought Lavendon shares approx 10 years ago and they are now still worth less than what I paid for them, the dividend payment is not very high either.
AccessibL
Well done to Lavendon... but such a pity they didn't give their workforce a pay rise last year. I wonder how much of what should have gone to the people who put the effort in is getting redirected to the shareholders? Shameful, really.