Delivery switch pays off for access giant
Nationwide Platforms, the UK’s biggest powered access hire firm with more than 10,000 machines, has reported growing rental revenues and profits for the first half of 2016, despite dropping its prices.
Lavendon Group plc, which operates as Nationwide in the UK, reported that its UK rental revenues in the six months to 30th June 2016 increased by 7% to £57.2m (2015: £53.3m) with underlying operating profit increasing by 8% to £9.5m (2015: £8.8m) and margins improving to 15.7% (2015: 15.2%).
Revenue growth, which increased as the year progressed, was driven by winning business from smaller competitors. These gains “more than absorbed a 3% year on year softening in pricing”, the company said.
Moving transport operations – the delivery and collection of machines from customers’ sites – back in-house had generated significant efficiency gains, it said. “These operational efficiency improvements have increased the availability of the UK fleet by almost 5% in the first half, effectively releasing around 500 extra machines for hire.”
The UK accounts for 45% of Lavendon’s group rental revenues. The company as a whole reported a 13% rise in group revenue for the first half to £134.2m (2015: £119.1m) and pre-tax profit up 10% to £15.9m (2015: £14.5m).
Net debt climbed 25% during the six-month period to reach £148.9m.
- Click here to return to the previous page
- Subscribe to our free construction newsletters
- Buy & Sell Construction Plant Machinery online with TCiTrader.co.uk. Find new, used & reconditioned Construction Equipment. Click here to view Construction Equipment Classifieds.
Download our free construction news iPhone / iPad app. Sign up to our FREE email newsletters or subscribe to our RSS feed for regular updates on the latest Construction News, Plant News, Contract News & Supplier News. The Construction Index also provides the latest Construction Tenders, Construction Market Data & Construction Law Commentary all FREE.
This article was published on 26 Aug 2016 (last updated on 26 Aug 2016).