Lavendon looks to power access to boost profit

Lavendon Group, Nationwide Access' parent company, has posted a pre-tax loss (on ordinary activities) of £752,000 for the first six months, compared with a £631,000 profit last year.

While turnover was up by 5% to £50m, increased depreciation reduced the operating profit on ordinary activities to £2.3m and £3m of interest charges turned that into a loss.

The company's Spanish revenues increased by 70% to £1.7m, while the Middle East was 58% higher at £2.9m and France saw a 54% increase to £2.4m. Its German operation was restructured and Lavendon chairman David Price said the hire rates in Germany have now stabilised.

He said conditions in the major markets remain difficult but believes the shift away from traditional access systems to powered access will deliver long-term growth in excess of economic growth.