25th Jun 2008 07:00
25th June 2008
LAVENDON GROUP PLC ("THE GROUP")
PRE-CLOSE TRADING UPDATE
Lavendon Group plc, Europe's market leader in the rental of powered access equipment, today issues the following pre-close trading update:-
"The Group's revenues for the five months ending 31 May 2008 have increased by 37% compared to the same period last year, with operating margins continuing to improve.
In the UK, revenues have increased by 30% for the period, a rate of growth that has benefited from the acquisition of The Platform Company, which was completed on 1 April 2008. The Platform Company has performed well since acquisition and is in line with our expectations. Operating margins remain healthy, benefiting from the increase in scale of the overall UK business.
Revenues from Germany, in sterling terms, have increased by 5% in the period. On a local currency basis, revenues year to date have declined by 4% as a consequence of the merger of the Group's two German operations at the start of the year. Revenues are now on an improving trend, showing year on year growth over recent weeks. Operating margins continue to improve, as the expected annualised synergies of £2.5 million from the merger are being delivered.
Revenues for the Group's French and Belgian businesses have increased by 307%, reflecting the acquisition of the DK Rental businesses. This rate of growth is delivering the expected improvement in operating margins.
In Spain, revenues have increased by 175%, following the acquisition of DK Rental Spain, and operating margins have improved.
Total revenues in the Middle East have grown by 13%, with underlying rental revenues, as opposed to revenues from sale of new equipment, increasing by 33%. The strong growth in rental revenues is continuing to deliver improvements in overall operating margins.
Whilst the Group's net debt levels have, as anticipated, increased following the acquisition of The Platform Company, they remain comfortable and are well supported by strong operational cash flows.
The Group continues to trade in line with our expectations and we look forward to reporting the Group's progress for the half year on 29 August 2008."
Ends
For further information please contact:
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Lavendon Group plc
Kevin Appleton, Chief Executive
Alan Merrell, Group Finance Director
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01455 558874
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Financial Dynamics
Jonathon Brill/Billy Clegg/Caroline
Stewart
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020 7831 3113
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