Lavendon's rental revenue up 6% in first half of year.

Access rental company, Lavendon's first half year results have come in ahead of the board's expectations with second quarter rental revenue growth up 4% compared to the same period last year and growth in the first half of the year (ending June 30) up 6%. Big increases have been seen in the French and Middle East markets 19% and 30% respectively for the first half year.

Don Kenny, Chief Executive of Lavendon Group plc, said, "The first half has seen an encouraging improvement in both revenues and margins. Whilst mindful of the continuing economic uncertainties, it is likely, given the Group's current performance that our results for the year will be ahead of the Board's previous expectations."

The UK, which contributes almost half the company's revenue, had a 1% increase in rental revenue over 2011 in both the first and second quarters. France, which contributes 9% of the revenue brought in 27% more in the first quarter and 11% more in the second quarter of 2012 compared to the previous year.

The Middle East, now bringing in 15% of Lavendon's rental revenue, increased its turnover by 28% in Q1 and 33% in Q2.

The company said that the combination of revenue growth across the first half and its ongoing programme to improve operational and capital efficiency, has enabled the Group to make continued good progress in improving profitability, margins and returns on capital employed (ROCE).

"A reduction in the level of capital deployed in our German business[contributing 21% and revenues falling 2% in the first half year] has been a particular area of focus, and is being addressed through the ongoing disposal of surplus equipment as part of our wider performance improvement plan for the business.

"We have also deployed additional capital into the Middle East as the market outlook remains encouraging, and we believe the attractive returns available should enable the region to become an even more important contributor to the Group's performance in the near term."