04.03.2008

Lavendon boosts profits

In addition to announcing the acquisition of The Platform Company this morning Lavendon has also released its detailed full year numbers for 2007.

Revenues increased by 49 percent to £188 million, while pre-tax profits leapt by 178 percent to £21.4 million before exceptional costs. The exceptionals of £2.5 million were largely associated with integration costs in Germany, following the acquisition of Gardemann. Pre-Tax profits after exceptional costs was £18.9 million an increase of 145 percent.

The UK business saw revenues rise by 30 percent to just under £106 million, while operating profits increased by 40 percent to £17.1 million.

In Germany the addition of Gardemann boosted revenues by 123 percent to £48.5 million while a loss of £1.9 million turned into an operating income of £5.2 million.

France has now been merged with the DK rental operations in Belgium and France, revenues increased marginally to £8.6 million while last years loss of £500,000 turned into a modest profit of £100,000.

Spain now boosted by DK Rental Spain, although it had only a modest impact in 2007, coming late in the year, saw revenues rise by 55 percent with operating profits trebling to £1.2 million.

Finally in the groups operations in the Middle East posted a 60 percent revenue increase to £16.5 million while operating profits doubled to £5.1 million.

Vertikal Comment

While these are first class results, the group has substantial room to improve its profitability significantly in 2008 as the full benefits flow through from its major acquisitions. It is also generating decent volumes of cash so don’t be surprised to see further takeovers during the year. Most likely overseas.