Lavendon confident of reaching targets as trading improves in first half

Equipment rental provider Lavendon Group said it was confident on meeting its targets for 2015 after reporting solid growth in profit, margins and return on capital employed in the first half.

In the first six months of 2015, the group posted an 8% year-on-year increase in growth rental revenue in the Middle East, while a solid display in France, drove its Continental Europe revenue up by 2% in the period.

The London-listed group said market conditions in its UK market were also improving, with rental revenue declining just 1% in the second quarter compared with a 2% drop posted in the first half and a 3% fall seen in the first three months of the year.

Total group rental revenue in the first half was 1%, though it rose to 2% in the second quarter.

"The group's trading performance has progressively improved across the first half, with modest growth in overall group revenues and continuing operational improvements driving further increases in profitability and margins," said group chief executive Don Kenny.

"The board remains confident of delivering further progress during the current year.

"Furthermore, to build on this momentum, we are accelerating the investment in our fleet over the final months of this year to ensure we are well placed to respond to improving market conditions as we move into 2016."

Lavendon shares were up 1.96% to 185.83p at 10:00 on Thursday.