Lavendon made £21.9m before tax in the year to 31 December 2011, compared to £13.3m in 2010. Revenue was up 4% to £225.4m (2010: £217.5m).
Rental revenues in the UK increased 7% during the year to £108.4m (2010: £100.9m), principally driven by a 5% rise in rates and improved volumes in the first eight months of the year. Volumes peaked in September and then declined towards the year-end as a number of major projects completed. The growth in rental revenues fully absorbed the anticipated decline in sales of ex-rental fleet machines (a smaller number of units were available for sale in 2011), resulting in total revenues for the year being stable at £112.3 million (2010: £112.1 million). The reduction in sales of old kit pushed the UK division’s underlying operating profit down 17% to £11.3m (2010: £13.6m).
Overseas operations in France, Belgium and Germany all grew strongly.
Net debt was reduced 24% during the year from £140.3m to £106.6m. Since the year-end, Lavendon has also agreed new £150m debt facilities with its banks.
Chief executive Don Kenny said: "The group made good progress during 2011 in improving the financial performance of its operations. As we move into 2012, we are encouraged by the operational efficiency gains made to date and the impact that these will have on the group's operating leverage as revenue growth is delivered. Our improvement plans for Germany are being implemented and our Middle East region is now demonstrating a sustained recovery in revenues. The increased level of capital investment in the group's rental fleet planned for 2012 will be funded from our annual cash flows, still allowing free cash to be generated to reduce net debt levels further.”
Got a story? Email news@theconstructionindex.co.uk
