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Lavendon results buck sector trend
00:00 03 Sep 1998
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Despite a slight tailing off in demand for powered access equipment
and substantial hire rate reductions by competitors, Lavendon
Group, the parent company of Nationwide Access, has posted record
interim results for the six months to 30 June 1998.
Whilst turnover surged by 60 per cent to £14.65 million as opposed to £9.16 million last year, pre-tax profits have jumped by 53 per cent to £2.36 million (£1.54 million). Earnings per share rose 25 per cent from 5.54 to 6.91p.
Of the group's total turnover for the period, £12.85 million has been achieved by its core business Nationwide Access. Against last year's figure of £8.37 million this represents a 53 per cent improvement in returns.
The surge in growth comes on the back of a significant investment in the company's depot network and hire fleet and the pursuit of business overseas.
On the issue of competitors' reduced rates and evidence of a slight downturn in demand for powered access equipment, a city spokesman, speaking on behalf of the company, said: "There's still an awful lot of growth to be had in the UK."
Recent market research (which has encouraged companies such as Lex Access to enter the market) indicates that, since 1990, year-on-year growth in this sector has been in the region of 20 per cent. The number of companies keen to cash in on this growth may now be sufficient to dilute the level of return.
Nationwide Access, which is countering rate attacks by offering a seven-day-a-week service on a national basis, is the main beneficiary of last year's rights issue which raised £4 million.
Since 1997, the operation's total fleet holding of self-propelled booms has grown from 1,800 units to 2,500. Similarly its depot network has increased from 23 to 32 depots.
In addition to Nationwide Access, the Group operates Access Solutions a business specialising in service, sales and long-term rental, and Skylift, a rental operation for vehicle-mounted equipment. Overseas the company's hire portfolio includes operations in Germany, Hong Kong and the Middle East.
Of the future, David Shipman, MD, told shareholders: "Provided there is no worsening in the overall economic climate we expect to demonstrate further progress in both growth and profitability for the year as a whole."
Whilst turnover surged by 60 per cent to £14.65 million as opposed to £9.16 million last year, pre-tax profits have jumped by 53 per cent to £2.36 million (£1.54 million). Earnings per share rose 25 per cent from 5.54 to 6.91p.
Of the group's total turnover for the period, £12.85 million has been achieved by its core business Nationwide Access. Against last year's figure of £8.37 million this represents a 53 per cent improvement in returns.
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The surge in growth comes on the back of a significant investment in the company's depot network and hire fleet and the pursuit of business overseas.
On the issue of competitors' reduced rates and evidence of a slight downturn in demand for powered access equipment, a city spokesman, speaking on behalf of the company, said: "There's still an awful lot of growth to be had in the UK."
Recent market research (which has encouraged companies such as Lex Access to enter the market) indicates that, since 1990, year-on-year growth in this sector has been in the region of 20 per cent. The number of companies keen to cash in on this growth may now be sufficient to dilute the level of return.
Nationwide Access, which is countering rate attacks by offering a seven-day-a-week service on a national basis, is the main beneficiary of last year's rights issue which raised £4 million.
Since 1997, the operation's total fleet holding of self-propelled booms has grown from 1,800 units to 2,500. Similarly its depot network has increased from 23 to 32 depots.
In addition to Nationwide Access, the Group operates Access Solutions a business specialising in service, sales and long-term rental, and Skylift, a rental operation for vehicle-mounted equipment. Overseas the company's hire portfolio includes operations in Germany, Hong Kong and the Middle East.
Of the future, David Shipman, MD, told shareholders: "Provided there is no worsening in the overall economic climate we expect to demonstrate further progress in both growth and profitability for the year as a whole."
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