15th Nov 2016 09:07
LONDON (Alliance News) - Equipment rental firm Lavendon Group PLC on Tuesday said it is set to deliver full-year results marginally ahead of its expectations following robust rental revenue growth in the first nine months of 2016.
Lavendon said group rental revenue rose 9.0% in the first nine months to the end of September year-on-year, with 8.0% growth in the UK, 2.0% growth in Europe and 20% growth in its Middle East business.
The UK business was boosted by market share gains and an improved pricing environment, while the Middle East was underpinned by strong performances in the United Arab Emirates, Kuwait, Oman and Qatar. Europe revenue was driven higher by France and Belgium, which offset weakness in Germany.
"The group's trading performance has continued to deliver strong revenue growth through the third quarter. This growth reflects the benefits of our strategic investment programmes in both 2015 and 2016 to strengthen our market positions in all regions, together with the further operational improvements we have made to support the delivery of our growth plans," said Lavendon Chief Executive Don Kenny.
"The board is encouraged by the trading performance to date, and as a consequence of the favourable translational impact on our overseas earnings from the continuing weakness of sterling, we expect the group's results to be marginally ahead of our original expectations for 2016," he added.
Lavendon shares were up 2.8% to 134.65 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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