Strong first half for Lavendon

Lavendon Group had a strong first half of the year with revenue up 13% to £134.2m ($177.3 million), representing good rental growth in the UK, Middle East and France. Rental revenue was also up 13% to £127.1 million ($167.9 million). Group underlying operating profit increased by 10%

In the six months ending 30 June, the company also reported EBITDA a rise of 17% in Earnings before interest, taxes, depreciation and amortization (EBITDA), compared to the same period in 2015. This, it said, would fund its capex programme of UK62 million. Profits before tax were up 10% to £15.9 million ($21 million), while return on capital employed was 12.2%, compared to 12.7% last year.

Don Kenny, chief executive of Lavendon Group, said, “This growth has built upon the momentum established within the business towards the end of 2015 with the UK, Middle East and France being the primary drivers. The 18% rise in the interim dividend reflects this performance and the board’s confidence in the group’s long term future.

Mr Kenny added that strategic fleet investment decisions in 2015 and actions taken in the first half to optimise fleet deliveries, along with improvements in operational processes, were key factors. “The restructuring of our German business is progressing as planned and is on track to be operational in quarter four.

“Trading since the half year has continued to be in line with our expectations and, whilst mindful of the recent increased economic uncertainty, the board remains confident of making further progress in the second half and delivering on its expectations for 2016.”