23.04.2008

Lavendon up 26%

The Lavendon Group, the world’ largest specialist aerial lift rental company, has reported first quarter revenues up 26 percent.

UK revenues increased by 16 percent, Germany by three percent, France/Belgium by almost 300 percent, Spain by 162 percent – these last two due to the addition of DK Rental effective for the entire quarter. Middle East revenues climbed 12 percent.

The company will make the following statement at its Annual General Meeting later today.

“The Group’s revenues for the first quarter have increased by 26 percent when compared to the same period last year.

In the UK, revenues have increased by 16 percent and it is expected that this rate of growth will accelerate during the remainder of the year, following the completion of the acquisition of The Platform Company on 1 April 2008, underpinning already healthy operating margins.

Our German businesses are now fully integrated and whilst, as expected, revenues softened in the quarter by three percent due to these integration activities and the timing of Easter, the operation is firmly on track to deliver the expected annualised cost savings of £2.5 million and the resultant margin improvement in 2008.

Following the acquisition of DK Rental in December 2007, the scale of the Group’s French and Belgian business has almost quadrupled, with revenues increasing by 297 percent. This increase in scale is delivering the expected improvement in operating margins.

In Spain, revenues have increased by 162 percent following the acquisition of DK Rental Spain, with further improvement in operating margins.

Total revenues in the Middle East have grown by 12 percent, with underlying rental revenues, as opposed to revenues from sale of equipment, increasing by 35 percent. The continued growth of rental revenues is delivering a strong improvement in overall operating margins.

The Group’s net debt levels remain comfortable and are well supported by strong operational cash flows. The Group is trading in line with our expectations and we look forward to reporting further progress in the coming months.”