Shares in Lavendon Group (LVD) fell 2.5 per cent following its first-quarter trading update, despite the tool hire company revealing that revenue for the period was up 2 per cent on a constant currency basis. Chief executive Don Kenny said management is confident of "delivering on its expectations for 2015".
However, UK rental revenue fell 3 per cent during the period due to a decline in rental volumes, primarily among its smaller contractor customer base. Revenues from continental Europe were also flat, as 13 per cent growth in France was offset by a decline in Germany and Belgium. Meanwhile, in the Middle East, higher volumes drove 11 per cent growth. Management is increasing investment in the region to expand its fleet. As a result, net debt rose from £90m to £103m over the quarter.
