Lavendon suffers in the first half

Powered access provider Lavendon had a tough time in the first six months of this year, turning in a pre-tax loss after exceptional costs of £752,000 compared with a pre-tax profit of £631,000 in the same period a year ago.

Turnover did increase 5% to £50m, but profitability was hit by adverse trading conditions throughout Europe, caused by a surplus of supply driving rates down.

In the UK, difficult conditions in the telecommunications and the commercial and industrial sectors led to an operating profit after exceptional costs of £3.9m (£5.4m). However, turnover was stable at £28.5m.

Chairman David Price offered a cautious outlook for the group, noting that: "Our operational and financial gearing is presently biting hard into the group's performance. We will remain focused on managing costs, securing operational improvements and reducing debt levels."

Lavendon's net debt stood at £116.7m, giving a gearing (ratio of debt to assets) of 130%.