14.11.2013

Lavendon issues trading statement

UK based international access rental group Lavendon, owner of Nationwide Platforms, DK Rental and Rapid in the Middle East, has issued a trading statement with indications of revenue growth for the 10 months to the end of October.

Rental revenues are up one percent with overall revenue up two percent on last year. The UK and Germany are both down five percent, with the UK improving in the third quarter while Germany dipped again. Belgium is down eight percent, while France is up eight percent all topped by the Middle East which is 25 percent higher than this time last year.

Net Debt is up to £109 million, but is expected to drop back to the target level of £97 million by year end.

Chief executive Don Kenny said: "The continued strong revenue growth seen in our French and Middle East businesses, together with the improving trends seen in our other markets, has enabled the group to increase its rate of growth in the third quarter.

The group's Return On Capital Employed is expected to be marginally below the 10.7 percent reported in 2012, but we are already taking measures to address this and remain confident that, over the business cycle, we will deliver a ROCE for the group greater than our average weighted cost of capital. Whilst we note the continuing economic uncertainties in our European markets, the board remains confident of delivering its profit expectations for the year."