Lavendon debt level slashed by UK sales

Powered access specialist Lavendon said strong demand for access equipment in the UK and a restructured German operation have helped reduce its debt and increase profitability.

The company has reported an operating profit of 1.1m for the first six months of 2005, compared with a loss of 500,000 for the same period in 2004.

Alan Merrell, group finance director, said the trading performance was in line with expectations and net debt was further reduced to 73.4m from 98.7m in 2004.

Reported revenue stood at 47.9m (50m). This follows the anticipated reduction in German revenue as a result of the group's operational restructure and the sale of its Austrian business, which generated a cash sum
of 2.7m.

"Our UK business, Nationwide Access, is doing very well as there is a noticeable increase in access equipment usage," said Merrell.

In the first six months of the year, revenue in the UK increased by 2% to 29.3m, with operating profit increasing to 3.2m before exceptionals.

Merrell said the company expected its overall debt to be further reduced by the year
end, while spending on new equipment will total more than 5m for 2005.

Lavendon chairman David Price commented: "The performance has shown an encouraging improvement over the same
period last year. This has been achieved through revenue growth and operational efficiencies in the UK."

Price added that the UK powered access market has experienced a period of growth this year, mainly driven by increased activity levels in price competitive sectors such as commercial construction.