18.04.2013

Lavendon slips 4%

Lavendon has reported first quarter revenues down four percent, rental revenues fell two percent

Looking at the rental numbers the UK was seven percent lower, Germany and Belgium 12 percent each, largely due to poor weather conditions and delayed projects. France improved two percent in what was, according to the company, tough market conditions, while the Middle East continued to perform with revenues up 34 percent.

Net debt at the end of the quarter was up £14 million to £111 million due to increased capital investment. The company expects this to return to 2012 levels by year end.

Chief executive Don Kenny said: "The group's first quarter trading performance is in line with the trends we reported in our 2012 results statement in February. It reflects the disruption to our European revenues caused by prolonged periods of adverse weather, largely offset by the continued strong performance of our Middle East business.”

“We are continuing to achieve tangible improvements to our operational and capital efficiency, which will underpin our ability to deliver further progress in our key objective of improving our ROCE. Whilst ever mindful of the continuing economic uncertainties in our European markets, the Board is confident of delivering its expectations for the year."

Vertikal Comment

These results are not entirely surprising and certainly not indicative of what we can expect for the year and weather certainly played a significant role. The main thing is that rates have not been too badly affected and the company continues to make cost savings and efficiencies which should help maintain the bottom line for the first quarter, while the company remains confident of its initial projections for the full year.