There were some encouraging noises on Lavendon’s (LVD) UK business in these results. Lavendon, which rents out crane-like equipment for aerial construction work, said its end markets were starting to indicate cyclical recovery. “We are becoming a bit more optimistic,” says chief executive Don Kenny. A 6 per cent fall in UK rental revenues at the half-year stage had softened to a 4 per cent drop by the year-end. And there was also some good news on pricing. Rates were down 1 per cent year-on-year in the first half, but picked up in the second half to finish the year higher than 12 months before.
Whilst the UK business appears to be moving onto a firmer footing, its profit performance last year clearly showed the impact of what have been tough trading conditions. Underlying operating profit slipped 14 per cent to £16.5m. The UK was still the largest contributor to group profit, making up almost half of total underlying operating profits. But the Middle East is not far behind, following a strong showing last year that saw underlying operating profits jump 33 per cent to £14m. Lavendon says prospects in the region remain promising, with current and planned infrastructure and construction projects worth over $2tn.