28th Apr 2005 07:00
Lavendon Group PLC28 April 2005 28 April 2005 LAVENDON GROUP PLC AGM STATEMENT At the Company's Annual General Meeting, to be held at 10.30am this morning, theChairman, David Price, will make the following comments on current trading:- "The Group's revenues for the first quarter are broadly in line with the sameperiod last year, with the decline in Germany's turnover being offset by growthfrom the Group's other markets. Year to date revenues in the UK have increased by 7% over 2004. Although thecomparison is against a particularly weak quarter for our UK business last year,it does indicate that the return to revenue growth in the Group's largest marketis now firmly established. Following the restructure of our German network from 44 to 24 depots, and withcontinued weak demand, Euro revenues have reduced by 23% over the same periodlast year. This revenue decline was greater than anticipated; however, the costsavings delivered from the restructure have exceeded our expectations, enablingoverall progress to be made in reducing the level of operating losses comparedwith the same period last year. In France, Euro revenues have increased by 27% over the same period last year,following the expansion of both the depot network and rental fleet in the lastsix months. The cost of this expansion is producing a short-term drag on theoperations' performance, which will continue until the new depots areestablished and the additional fleet is absorbed into the business. Revenues in Spain are broadly in line with the same period last year. In theMiddle East, demand remains solid, with overall revenues for the regionincreasing by 12%. The Group's cash flow remains strong and was enhanced by the disposal proceedsof £2.65 million from the sale of the Group's Austrian business, announced on 28February 2005, enabling net debt levels to continue to be reduced during theperiod. Overall, trading is in line with the Group's expectations. Our focus remainsfirmly upon improving the year on year operational performance of the businessand continuing to reduce further the Group's net debt level." David PriceChairman28 April 2005 For further information:- Lavendon Group plc Tel:01455 206750David Price, ChairmanKevin Appleton, Chief ExecutiveAlan Merrell, Group Finance Director Weber Shandwick Square Mile Tel: 020 7067 0700Nick Dibden / Yvonne Alexander This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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