Lavendon grows in UK, France and Middle East

By Murray Pollok14 July 2016

Continued revenue growth in the UK, France and some Middle East territories helped Lavendon grow its first half revenues by 11 per cent, year on year, with only Germany, Belgium and Saudi Arabia showing declines or modest growth rates.

In its half-year trading statement the company said it was too early to assess the full impact of the UK’s Brexit vote but noted it was “well positioned”, given that half of its revenues were generated outside the UK and that a prolonged period of Sterling weakness would have a positive “translational impact” on overseas revenues. This would offer some protection in the event of any adverse economic consequences, said Lavendon.

The UK was a strong performer, with claimed market share gains generating a 7 per cent increase in rental revenues for the first six months of the year. This was driven also by a larger fleet and greater availability of the fleet through a more efficient transport and maintenance operation.

In the Middle East, growth in the company’s operations in UAE, Kuwait, Oman and Qatar helped offset a decline in its Saudi Arabian operation. Revenues increased by 22 per cent year on year on the back of higher utilisation of a larger fleet.

In Continental Europe, meanwhile, revenues were up 3 per cent, driven by a 10 per cent increase in France and 2 per cent in Belgium. These helped offset a 2 per cent decline in Germany, where a previously announced restructuring continues. The company booked a £2.5 million charge related to this restructuring, as well as for the re-integration of the UK transport function that was previously outsourced.

Don Kenny, Lavendon’s Chief Executive, said the growth reflected the benefits of the investment programme in 2015 to strengthen its market positions in all regions, “and the continued operational improvements made during the first half to support the delivery of our growth plans.

“Given the encouraging trading performance in the first half, together with the degree of resilience provided by our international operations, the Board remains confident of making further progress during the year and delivering on its expectations for 2016."

MAGAZINE
NEWSLETTER
Delivered directly to your inbox, Access, Lift & Handlers Newsletter features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
Featured Training From Easybook
NYC SST Online Training

The clock is ticking… Construction workers in New York City – have you fulfilled your required Site Safety Training (SST)? Get your SST card online now

Latest Events
Last chance to register for the virtual ALH Conference
The ALH Conference is set to kick off (virtually) at 9 a.m. CST on Tuesday, Sept. 14. This is your last chance to register for the live event
ALH Conference shifts to virtual format
The ALH Conference, set for September 14, will be held online, ALH and KHL Group have announced. Registration is now open
ARA Show: Rental-ready
The ARA Show will return to Las Vegas this October for the first time in eight years. ALH provides a preview to the all-things-rental event.
Off-Highway Research

The gold standard in market research

Off-Highway Research offers a library of more than 200 regularly updated reports, providing forensic detail on key aspects of the construction equipment industry.

Our detailed insights and expert analyses are used by over 500 of the world’s largest and most successful suppliers, manufacturers and distributers, to inform their strategic plans and deliver profitable growth.

Click here to visit our website

CONNECT WITH THE TEAM
Lindsey Anderson Editor, Access, Lift & Handlers Tel: +1 312 929 4409 E-mail: lindsey.anderson@khl.com
Tony Radke Sales Manager Tel: +1 480 478 6302 E-mail: tony.radke@khl.com
CONNECT WITH SOCIAL MEDIA