Lavendon Group (LVD)

232.50p
   
  • Change Today:
      2.25p
  • 52 Week High: 246.00p
  • 52 Week Low: 153.00p
  • Currency: UK Pounds
  • Shares Issued: 168.05m
  • Volume: 496,273
  • Market Cap: £390.72m
  • RiskGrade: 137
  • Beta: 0.38

Lavendon recovering well

Date: Friday 26 Aug 2011

LONDON (ShareCast) - Equipment rental firm Lavendon pulled out of its August tailspin after announcing a more than five-fold increase in pre-tax profit, as the benefits of its restructuring programme begin to feed through.

In the six month period ending 30 June, profit before tax soared from £0.7m in the same period the previous year to £4.6m this year, while revenue was up just 4% from £4.1m to £10.4m.

The improved performance was welcomed by executive chairman John Standen, who said: "The modest recovery in our markets combined with operational improvements have both contributed to increased operating margins and return on capital employed."

The company's German division, where revenue increased by 9% to £23m, is planning to reshape the business over the next 18 months, "so that it is more aligned with the market place and has greater capacity to deliver acceptable returs on the capital employed in the business."

Performance in the Middle East had been "disappointing" for the group, while results in all other locations were improving.

Current trading momentum has carried into the third quarter, the company said, adding that operational efficiency improvements are anticipated to accrue through the second half.

The group increased the interim dividend by 12% to 0.37p per share (2010: 0.33p).

The company anticipates that net investment for the year will total about £15m.

Singer Capital Markets, which rates the shares a "buy", said the figures were better than expected.

"H1 [first half] revenue has grown well and although headline growth slowed in Q2 [second quarter], there are factors that suggest that Q1 overstated underlying growth whilst Q2 understated it," said analyst Andy Murphy.

"However, given the more sensible pricing environment, especially in the UK, coupled with the restructuring, we remain confident that Lavendon can deliver on our forecasts," the broker added.

The share price was up 5.04% to 94.00p at 15:32.

NR

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Lavendon Group Market Data

Currency UK Pounds
Share Price 232.50p
Change Today 2.25p
% Change 0.98 %
52 Week High 246.00p
52 Week Low 153.00p
Volume 496,273
Shares Issued 168.05m
Market Cap £390.72m
Beta 0.38
RiskGrade 137

Lavendon Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
53.44% below the market average53.44% below the market average53.44% below the market average53.44% below the market average53.44% below the market average
34.19% below the sector average34.19% below the sector average34.19% below the sector average34.19% below the sector average34.19% below the sector average
Price Trend
78.86% above the market average78.86% above the market average78.86% above the market average78.86% above the market average78.86% above the market average
52.05% above the sector average52.05% above the sector average52.05% above the sector average52.05% above the sector average52.05% above the sector average
Income
52.51% below the market average52.51% below the market average52.51% below the market average52.51% below the market average52.51% below the market average
59.63% below the sector average59.63% below the sector average59.63% below the sector average59.63% below the sector average59.63% below the sector average
Growth
25.52% above the market average25.52% above the market average25.52% above the market average25.52% above the market average25.52% above the market average
20.25% above the sector average20.25% above the sector average20.25% above the sector average20.25% above the sector average20.25% above the sector average

What The Brokers Say

Strong Buy 2
Buy 0
Neutral 1
Sell 0
Strong Sell 0
Total 3
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Lavendon Group Dividends

  Latest Previous
  Final Interim
Ex-Div 05-Mar-14 04-Sep-13
Paid 30-Apr-14 18-Oct-13
Amount 2.40p 1.15p

Trades for 17-Apr-2014

Time Volume / Share Price
16:35 1,701 @ 232.50p
16:29 4 @ 232.50p
16:28 408 @ 232.75p
16:28 42 @ 232.75p
16:19 10 @ 232.25p

Lavendon Group Key Personnel

Finance Director Alan Merrell
CEO Don Kenny

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