29.02.2012

Profits up 65% at Lavendon

Lavendon, the UK based international aerial lift rental group has issued its results for 2011, which show a four percent rise in overall revenues and a 65 percent rise in pre-tax profits to £21.9 million.

Total revenues for the year were £225.4 million, four percent higher than in 2010, of this rental revenues were £216 million, a rise of eight percent, marginally better than its preliminary statement in January indicated.

Net debt was cut by £33.7 million to £106.6 million. The company also says
that trading since the start of the new year has been in line with its expectations suggesting that it will make further progress in 2012.
Click here to see Jan 12th report on Lavendon revenues

Chief executive Don Kenny said: "The group made good progress during 2011 in improving the financial performance of its operations. As we move into 2012, we are encouraged by the operational efficiency gains made to date and the impact that these will have on the group's operating leverage as revenue growth is delivered.”

“Our improvement plans for Germany are being implemented and our Middle East region is now demonstrating a sustained recovery in revenues. The increased level of capital investment in the group's rental fleet planned for 2012 will be funded from our annual cash flows, still allowing free cash to be generated to reduce net debt levels further.”

"Our increased dividend in 2011 underlines the Board's confidence in the strength of the group's cash flows. Whilst clearly conscious of the continuing uncertain economic environment, we believe that the combination of self-help measures to improve operational performance, our selective investment in high return assets and close management of cash generation, should enable the Group to make further progress in improving its return on capital employed in the coming year."