26.02.2015

Lavendon results impaired by write-offs

UK based international rental group Lavendon has issued preliminary results with a fall in statuary profits, due to one off charges and write-downs.

Total revenues, as already reported, were up four percent to £246.3 million - of which £231.9 was due to rental, three percent higher than in 2013. Pre-tax profits slipped from £23.4 million last year to £21 million this year. This after £11.1 million of one-off write-downs/write-offs, including an £8.8 million goodwill write-off in Belgium. The company reports underlying pre-tax profits of £34.1 million, 14 percent up from last year.

Chief executive Don Kenny said: "The group delivered a very good performance in 2014, producing results at the top end of our expectations. Our two key regions of the UK and Middle East performed strongly. Moreover, these results were delivered despite significant exchange rate headwinds adversely impacting our overseas earnings. The dividend increase of 30 percent reflects these strong results and the board's confidence in the group's long term future."

"As we move into 2015, our primary focus is to build on the momentum established during 2014 by adding scale to our business and enabling our inherent operating leverage to drive further improvements to the Group's profitability. Since the year end, further growth in the Middle East is offsetting the impact of a year on year revenue decline currently being seen in the UK. Our overall margins are continuing to improve such that the board expects the group to perform slightly ahead of its profit expectations for the year as a whole."