25.04.2007

Lavendon issues trading statement

The Group's revenues for the first quarter have increased by 52 percent compared with the same period last year, reflecting both organic growth and the acquisitions completed in 2006.

A statement says that the Group has benefited from the relatively mild weather across Europe, which has accelerated the progress of a number of construction projects thereby strengthening its results in what is usually its weakest quarter.

In the UK, overall revenues have increased by 28 percent, including a like for like improvement of 11.0 percent.

Operating margins have continued to improve across the business. The acquisition of Rise Hire Limited, announced this morning, will contribute to the performance of the business for the remainder of the year.

The recovery in the German market has strengthened during the first quarter. Revenues have increased by 150 percent over the same period last year as a result of like for like organic growth of 20 percent, with the balance coming from the acquisition of Gardemann.

which was completed in December 2006. This strong revenue growth has enabled the business to improve its margins substantially and has accelerated its return to profitability.

Revenues in France declined by 8 percent, following a
restructure of the depot network, further progress has been made in reducing its operating losses.

In Spain, revenues have increased by 39 percent, with a corresponding strong improvement in operating margins.

Demand levels remain buoyant in the Middle East, where revenues have increased by 90 percent, resulting partly from improved sales of equipment in the period, and margins have improved as the "drag effect" of the costs required to make step-changes in the business reduces.