29.08.2014

Profit boost at Lavendon

International access rental group Lavendon has published its full half year results today, which show a strong rise in pre-tax profits.

The publication follows the top line revenue numbers which we covered in July, Click here to see Lavendon gathers pace with revenues, as predicted, coming in just over three percent higher at £117.4 million – (seven percent at constant currency rates) Pre-tax profits though were substantially up at £10.8 million, 25 percent higher than for the same period last year.

Net debt is nine percent lower at £98.2 million, with this year’s capital expenditure largely being funded from cash flow. Capital expenditure totalled £21.4 million down from £27.4 million last year , while sales of used equipment from the fleet totalled £4.4 million slightly lower than for last year.

The company also announced a rescheduling of its debt today with its existing £50 and €60 million revolving bank facilities, which were scheduled to expire in July 2016 now extended to July 2019 at a lower cost. In addition, the group is issuing two new loan notes on the US Private Placement market with a total value of €35 million. The first note of €17.5 million will mature in August 2021 and the second in August 2024.

Chief executive Don Kenny said: "The group has made good progress in the first half of the year delivering financial results in line with the board's expectations, despite increased exchange rate headwinds on our overseas earnings which illustrates the strength of our underlying performance.”

"Our financial performance is now starting to benefit from revenue growth which is driving our profitability, and our investment programme is directed towards those markets and products that offer attractive returns. Our key priority remains the delivery of increased shareholder value through the improvement of ROCE to a level above our weighted cost of capital over the business cycle; we believe we are well positioned to achieve this.”

"Trading since the half year has remained in line with the board's expectations, and, whilst recognising the continuing economic uncertainty in our continental European markets and the strength of Sterling, the board is confident that the group is well positioned to deliver its expectations for 2014 and substantial shareholder value in the medium term."