16.11.2012

Mixed quarter for Lavendon

International powered access rental company Lavendon has issued a trading statement which indicates a tough third quarter in its largest markets, with a pick up in October and November.

Overall revenues for the group excluding used equipment sales and currency fluctuations was up four percent for the nine months, and just one percent for the quarter.

Looking at the rental revenues in each of company’s regions, the UK – almost half the total revenues- was flat year on year, down three percent in the third quarter, partially due to fewer days in the period, but also to lower utilisation and a levelling off in pricing improvements. However October and
November have seen a pick up so that for the 10 months to the end of October the business is up one percent on last year.

Moving to Germany the news is less positive, with nine month revenues down five percent, following an 11 percent fall in the third quarter. This is due, says the company, to a much slower shift in the mix of fleet on hire than is traditionally seen in the quarter, towards higher revenue truck-mounted lifts.

Belgium was more positive with three percent growth over the nine months and two percent in the quarter.

France fared even better with 19 percent year to date and 18 percent growth in the quarter.

Finally the Middle East was once again the star performer with 32 percent growth in year to date revenues and 35 percent in the third quarter.

Chief executive Don Kenny said: "Trading in the year to date has been as expected, and whilst mindful of the continuing economic uncertainties, the board is confident that the group will deliver another year of good progress in 2012 with full year results in line with expectations."

Vertikal Comment

These trading statements do not really provide enough information to make any profound comments or to draw any solid conclusions. Hopefully the pick-up in activity in the UK in October and November will keep the company firmly on its stated strategy of improving rental rates and pricing discipline, which will serve it and the industry well in 2013 and beyond.

Germany is something of a surprise given that the market overall has been relatively solid. It shows how resistant it is to change away from its traditional local supplier mentality, as it remains one of the most fragmented markets in Europe. Cramo is possibly experiencing a similar issue with its recent acquisition?

The other regions are exceptionally positive, with France possibly demonstrating the wisdom of the earlier decision to pull equipment out of Spain. Overall this looks like a solid achievement during a tricky period.