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Lavendon profits squeezed in the UK

27 Feb 14 Access platform hire group Lavendon saw profits squeezed at its UK division Nationwide Platforms in 2013 after a slow start to the year.

Lavendon Group is the market leader in the rental of powered access equipment across European and the Middle East. However, in the UK – a market that accounts for roughly half of its business – its revenue fell 4% in 2013 to £109.8m (2012: £114.8m). Underlying operating profit fell 13.6% to £16.5m (2012: £19.1m).

Rental revenue in the UK was down 4% in the year to £103.4m (2012: £107.7m). The year started slowly, with bad weather hitting business, but picked up through the year. Volumes were consistently ahead of those in 2012, while rental rates started poorly but strengthened over the second half.

There was also a slight decline in revenue and profits in Germany, modest growth in France but a stronger performance in the Middle East, where revenue rose 23% to £45.6m (2012: £37.1m) and underlying operating profit by 33% to £14.0m (2012: £10.5m).

Lavendon’s underlying operating margin in the Middle East was a healthy 31% for the year, more than double the 15% seen in the UK.

Overall, group revenue was up 1% for the year to £237.5m (2012: £234.6m) and pre-tax profit was up 12% to £23.4m (2012: £20.8m).

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