Acceleration in Lavendon Group’s (LVD) Middle East business, as well as UK economic recovery, mean management expects full-year results to be towards the top end of expectations. Revenues for the group, which rents out equipment for aerial construction work, were up 6 per cent during 2014. The return on capital employed (ROCE) also improved during the second half and moved ahead of weighted average cost of capital (WACC).
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But trading in continental Europe remained difficult, plus the group felt the effects of FX headwinds. Full-year revenues in Belgium were down 13 per cent and 3 per cent in Germany. However the latter did show signs of recovery during the fourth quarter, returning to 3 per cent growth.
