17th Apr 2014 09:00
LONDON (Alliance News) - Lavendon Group PLC said Thursday that it was confident of meeting its full-year expectations after it saw revenues rise in its first quarter to the end of March.
The equipment rental company said that revenues had risen 7% on a constant currency basis, excluding ex-fleet equipment sales, during the quarter. Rental revenues were up 8%, driven by strong growth in the UK, France and the Middle East.
Lavendon said that revenue growth had improved its profitability, operating margins and returns on capital employed. The company continues to focus on improving its returns on capital employed, seeking to take it above its average weighted cost of capital.
Net debt increased to GBP109 million, compared to GBP97 million at the end of 2013, as it purchased additional equipment.
Lavendon said it will fund its planned investment programme for 2014 from its annual cash flows, and expects its year-end net debt to be in line with the year-end 2013.
"Whilst recognising the continuing economic uncertainties in our European markets, the Board is confident of making further progress during the year and delivering its expectations for 2014," said Chief Executive Don Kenny in a statement.
Shares in Lavendon were trading up 1.1% at 232.69 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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