Interim Management Statement

16 November 2012

Lavendon Group plc

Interim Management Statement

Performing in line with expectations

Lavendon Group plc ("the Group"), the market leader in the rental of powered access equipment in Europe and the Middle East, today issues the following interim management statement for the period to 15 November 2012.

Summary

·; Both total and rental revenues for the nine months to 30 September 2012 up 4%

·; Third quarter total revenues up 1%, rental revenues up 2%

·; Continued good progress in improving profitability, margins and ROCE

·; Full year results on track to be in line with Board expectations

The Group's total revenues for the nine months to 30 September 2012, on a constant currency basis and excluding ex-fleet equipment sales, increased by 4% compared with the prior year. In the third quarter, Group total revenues increased by 1% compared with 2011 on the same basis, but reflect fewer working days than in the prior year. The Group's rental revenue growth rates across the first three quarters of the year, together with year to date growth rates as at 30 September and 31 October 2012 are given below:

Percentages shown are on a constant currency basis and are rental revenues only excluding revenues from the sale of new and ex-fleet equipment

Our market leading UK business saw volumes improve across the third quarter, although they are still to reach prior year levels. The rate of year on year pricing improvement slowed in the quarter and was insufficient to compensate for the lower volumes and, as a consequence, revenues for the period declined. However, a subsequent return to revenue growth in October has meant that our UK business has grown revenues over the ten months through to 31 October 2012.

Our revenues in Germany declined in the third quarter, principally due to a much slower shift in the mix of fleet on hire, than is traditionally seen in the quarter, towards our higher revenue generating truck-mounted rental units. However, despite this disruption to revenue, the actions being taken to realign the business continue to deliver the expected improvement in return on capital employed ("ROCE").

Belgium and France continued to increase revenues in the quarter, with France delivering a particularly strong performance.

In the Middle East, the rate of revenue growth has continued to accelerate, supported by additional fleet investment in the quarter. We continue to believe, given the encouraging market outlook and our plans to invest further in the region during 2013, that our Middle East business will grow in relative importance to the overall Group performance in the near term.

The combination of revenue growth and ongoing operational and capital efficiency initiatives has enabled the Group to make further good progress in improving profitability, margins and ROCE. We have reduced the level of capital employed in Germany through the disposal of surplus fleet, as part of our wider performance improvement plan for the business. We have continued to deploy additional capital into the Middle East, partly funded from the release of capital in Germany, to support our ability to meet the growing demand in the region and benefit from the attractive returns available from that market.

The Group's net debt level at 31 October 2012, on a constant currency basis relative to the previous year-end, stood at £105 million, a modest reduction of £2 million over the ten month period reflecting the Group's planned increased investment programme for the year. At actual exchange rates, the Group's reported net debt position at 31 October 2012 was £102 million. By the year end, and subject to fluctuations in exchange rates, we expect net debt levels to be around £100 million.

Don Kenny, Chief Executive of Lavendon Group plc, commented:

"Trading in the year to date has been as expected, and whilst mindful of the continuing economic uncertainties, the Board is confident that the Group will deliver another year of good progress in 2012 with full year results in line with its expectations."

Ends

Conference call

A conference call will be held for analysts at 9.00am (UK time) today (16 November 2012), the details of which can be obtained from FTI Consulting. A replay of the call will be available on the company's website after the event at www.lavendongroup.com.

For further information, please contact:

Notes to Editors

Lavendon Group is the European and Middle East market leader in the rental of powered access equipment. The quality of diversity of its hire fleet, coupled with the professionalism and accessibility of its depot network, provides an exceptional product range for customers.

Powered access equipment is designed to enable people to work safely, productively and comfortably at height. It can be used in a comprehensive range of applications, both inside and outside buildings and structures.

The Group has operations in the United Kingdom, Germany, Belgium, France, Saudi Arabia, the United Arab Emirates, Bahrain, Oman and Qatar. The equipment fleet totals almost 20,000 units and the Group employs over 1,600 people.