19th Dec 2006 07:01
Lavendon Group PLC19 December 2006 19 December 2006 LAVENDON GROUP PLC PRE-CLOSE TRADING UPDATE Lavendon Group plc issues the following trading update for the year ended 31December 2006:- The Group's turnover has increased by 23% over 2005, through a combination oforganic growth and the acquisitions completed in the year. In the UK, revenues have increased by 32% over last year, and operating marginshave continued to improve. Although this strong revenue growth was mainlyattributable to the acquisitions made during the period, the underlying businessalso improved revenues despite transferring some fleet capacity to the newlyacquired businesses. The previously reported revenue decline in Germany in the first half of theyear, has been fully recovered and revenues now show an overall 2% increase over2005. This return to revenue growth has enabled good progress to be made inreducing its operating losses during the year. The recently completedacquisition of Gardemann, will enable this recovery in the financial performanceto be accelerated as the Group moves into 2007. Revenues in France and Spain have grown by 4% and 12% respectively, and bothbusinesses have improved their operating margins. Revenues in the Middle East have increased strongly, by 36%, with marginsremaining healthy despite the impact of the costs associated with the fleetincreases undertaken during the year. Net debt levels have increased following the acquisitions made in both Germanyand the UK during the year, but these remain well supported by the Group'sstrong operational cash flows and improved trading performance. Overall, the Group's performance is ahead of our expectations for the year andthe Board is confident that further progress will be made in 2007. -ends- For further information please contact: Lavendon Group plc Tel: 01455 206750Kevin Appleton, Chief ExecutiveAlan Merrell, Group Finance Director Weber Shandwick Square Mile Tel: 020 7067 0700Terry Garrett / Nick Dibden This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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