27th Feb 2014 15:00
LONDON (Alliance News) - Powered access equipment rental company Lavendon Group PLC Thursday reported higher pretax profit for 2013, buoyed by higher revenues and as its efficiency programme delivered GBP5.2 million of savings by the end of the year, above its expectations.
The company had set out to improve its operational and capital efficiency over a three year period that ended in 2013. It said it has now targeted a further GBP1.5 million in annual savings by the end of 2016 having scoped out an additional phase of improvements.
It has also targeted its capital spending at markets where it thinks it has the biggest growth expectations. It invested in France and the Middle East in 29013 and also spent money refreshing its European rental fleet. Its return on capital actually declined slightly during the year, mainly because trading in the UK was weaker than it had expected.
Lavendon reported a pretax profit of GBP23.4 million for 2013, up from GBP20.8 million in 2012, as revenues rose to GBP237.5 million from GBP234.6 million and net finance costs fell to GBP5.3 million, from GBP8.9 million.
It raised its full year dividend by 29% to 3.55 pence.
"The proposed increase in our dividend reflects both our strong cash flows and the Board's confidence in the group's future," Chief Executive Don Kenny said.
Operationally, it said it posted strong rental revenue growth in the Middle East and France, an improving trend in the UK, but progress in Germany had been disrupted while it completes a restructuring plan in that country.
"Trading since the year end has been in line with the board's expectations, and we believe the group is well positioned to deliver another year of financial progress and substantial shareholder value over the medium term," Kenny said.
Lavendon shares were down 2.6% at 208.25 pence Thursday.
By Steve McGrath; [email protected]; @stevemcgrath1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
LVD.L