Lavendon investment 'error'

Lavendon Group, parent company of powered access rental specialist Nationwide, has admitted that it may have made a mistake in the timing and scale of its investment in Germany.

"The results of the past few years suggest the timing and, to a degree, the scale were wrong," said group chief executive Kevin Appleton. "However, strategically, we still wouldn't have turned down the opportunity to be market leader in Europe's largest economy."

Turnover rose 14% to £103m in 2002 but pre-tax profit after exceptional costs (mostly associated with restructuring in Germany and an unsolicited approach from a prospective bidder) fell from £9.3m in 2001 to £4.8m.

In the UK, revenue increased 12% to £60.7m, while operating profit after exceptional costs rose 4% to £12.4m.