The UK operation, which accounts for 48% of group rental revenues and trades as Nationwide Platforms, increased its rental revenues by 7% to £111.1m (2013: £103.4m). Operating profits rose 24% to £20.4m (2013: £16.5m), with margins improving to 17.0% (2013: 15.0%).
However, the UK saw a decline in volumes as Nationwide moved away from smaller units with a lower average hire rate towards larger construction orientated machines that produce higher average revenues per hire. As a result, the UK business achieved a 6% rise in average rental rates.
Among the efficiencies implemented in the UK during 2014 was the outsourcing of transport.
Group total revenues increased by 7% to £253.1m at constant currency rates (2013: £237.5m), with rental revenues increasing by 6% to £238.3m on the same basis (2013: £225.3m). At actual exchange rates, total revenues and rental revenues increased by 4% and 3% to £246.3m and £231.9m respectively.
This revenue growth, combined with improved operational efficiency, increased the group's underlying operating profits by 15% to £40.6m (2013: £35.3m) at constant currencies, with margins improving to 16% (2013: 15%).
Underlying profit before tax was £34.1m (2013: £30.0m) and report pre-tax profit, including exceptional items, was £21.0m, down from £23.4m in 2013.
Lavendon Group has a total equipment fleet of close to 20,000 platforms across the Middle East, Belgium, France, Germany, and the UK.
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