Just as we predicted in our buy tip (193p, 09 Jan 2014), the UK economic recovery is beginning to drive a major uptick in business at Lavendon (LVD). The group rents out crane-like equipment for aerial construction work, but had been experiencing sluggish trading in the UK as the boom in construction was tilted more toward housing than the major construction projects that are Lavendon’s bread and butter.
IC TIP:
Buy
at
199p
No longer: UK rental revenue increased 11 per cent in the first half - “a rate of growth not seen in the business since 2009”, said chairman John Standen. That reflected a combination of higher volumes, a more favourable fleet mix and, importantly, rising prices.