10th Jul 2014 09:04
LONDON (Alliance News) - Lavendon Group PLC Thursday said it was increasingly confident in meeting its full-year expectations, as it saw revenues, excluding ex-fleet equipment sales, rise 4% in the half year to end-June.
The equipment rental company said revenue growth was due to improved trading, and a relatively weak comparative first quarter in the previous year due to adverse weather.
In Lavendon's second quarter, revenues were up 5%, with rental revenues up 6%.
In its European business, the company said it saw strong progress in the UK and France, although in Germany and Belgium volumes were relatively weak. The pricing environment in Germany is showing signs of stabilising, the company said, and pricing pressures have increased during the second quarter in Belgium.
In the Middle East, revenue from rentals rose 15%, driven by volume increases and pricing improvement, it said. The outlook for the market continues to be positive, and it is currently allocating additional capital into the region.
Net debt as at June 30 increased to GBP102 million from GBP97 million at the end of 2013 on a constant currency basis. At actual rates, net debt was GBP99 million due to favourable exchange-rate movements on its Euro denominated debt.
Lavendon said it will fund its planned investment programme for 2014 from its annual cash flows, and it continues to expect its year-end net debt level will be broadly in line with the end of 2013.
"Whilst recognising the continuing economic uncertainties in our Continental European markets, the board is increasingly confident of delivering on its expectations for 2014," said Chief Executive Don Kenny in a statement.
Shares in Lavendon were trading down 1.4% at 211.00 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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