Lavendon issues upbeat trading statement
The Lavendon Group has issued an upbeat trading statement for 2007 saying that its full year numbers will be better than expected.
Revenues for the first eleven months are up by 49 percent on last year, reflecting both organic growth and the acquisitions completed in 2006 and earlier in 2007.
At the same time operating margins have improved significantly during the period.
Revenues in the UK increased by 31 percent, including a like for like
improvement of 11.5 percent, while operating margins have improved across the business.
In Germany, revenues are up by 123 percent with 14 percent coming from like for like organic growth and the balance from the acquisition of Gardemann.
The company says that the revenue growth has led to a significant improvement in profitability and margins.
The Middle East business also remained very strong in terms of growth although the weaker currencies removed eight percent when converted to Sterling. Revenues still climbed by 71 percent, with margins remaining very healthy.
In France revenues declined by seven percent over 2006, but the operation has reduced its operating losses. Lavendon said: “The recent acquisition of DK Rental France is now expected to accelerate the combined French business towards profitability and delivering acceptable returns on investment. We will also benefit from one month's trading contribution from DK Rental Belgium in December.”
In Spain, revenues increased 37 percent, including one month's contribution from DK Rental Spain, and operating margins have increased strongly.
Debt levels have not surprisingly increased following the completion of the acquisition of the DK Rental businesses but are well supported by strong operational cash flows the company says.
Lavendon says that 2008 looks very positive with Kevin Appleton adding: “The Group's performance during 2007 has been strong, and is set to be ahead of the Board's earlier expectations. We are encouraged by the momentum we are carrying into next year and remain confident that the Group will make further significant progress in 2008.”