Overall rise at Lavendon Group
By Euan Youdale16 January 2015
Lavendon Group’s rental revenues increased by 6% in its 2014 financial year, with strong growth in UK, Middle East and French businesses. Individually, the UK saw 7% growth, while France grew 8% and the Middle East rose by 15%.
The German business returned to revenue growth in the fourth quarter with a 3% quarter-on-quarter rise. For the full year Germany saw a 3% decline on 2013. Belguim also saw a decline for its full year, down 13% on last year’s revenues.
The company said improved pricing and a more favourable machine mix continued in the UK, absorbing the expected lower volumes in the fourth quarter and producing a revenue growth of 1% for that period.
The rate of revenue growth in the Middle East business increased 20% during the fourth quarter and was principally driven by further increases in volumes. The business will be increasing its investment during the first half of 2015.
“As widely reported, economic conditions within our Continental Europe markets remain generally difficult,” said a company spokesman,“However, our German business returned to revenue growth in the final quarter, albeit against relatively weak comparators, and our French business has delivered another quarter of strong revenue growth.
The spokesman continued, "Our Belgian revenues have declined since the second quarter of the year compared to the prior year, following the completion of a major project in the first quarter of 2014 that had been underway through most of 2013.”
As of 31 December 2014 the Group’s net debt reduced to UK£95 million, on a constant currency basis, relative to the £97 million at the end of 2013. At actual exchange rates net debt was £90 million.
Don Kenny, Lavendon chief executive, said, "The Group performed well in 2014, with strong revenue growth in our UK, Middle East and French businesses driving improvements in our profitability and margins. This performance has been delivered despite exchange rate headwinds on our overseas earnings and the continued economic weakness in our Continental European markets.
"As we move into 2015, we are looking forward to building on the momentum that we have developed during the past 12 months and making further progress in the year ahead."