Tool hire group Lavendon (LVD) enjoyed a reversal in fortunes after its shares surged 7 per cent on reported growth in the Middle East and continental Europe during the first nine months of the year. However, group revenue was up by just 1 per cent, or 2 per cent on a constant currency basis and excluding ex-fleet equipment sales.
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The Middle Eastern business led the pack, increasing sales by 7 per cent during the period. Growth is now driven by the wider region beyond Saudi Arabia, which is suffering from pricing pressures in the construction sector. The core UK business was less strong, with revenue falling 1 per cent. However, the sales decline lessened throughout the past nine months and were flat by the third quarter.
