Join our community of smart investors

Lavendon climbs on strong rental demand and restructuring gains

The supplier of scissor lifts and van mounts made strong strides in the first half of 2016
August 30, 2016

Lavendon (LVD), which is in the business of leasing motorised mounts and platforms across Europe and the Middle East, registered double-digit growth in sales and underlying profit during the first half. Investors returned the favour, jacking up the equipment hire group's shares by almost 9 per cent on results day.

IC TIP: Buy at 135p

Solid demand in France, market share gains in the UK and having nearly 1,000 more machines available for hire in the Middle East boosted the top line. Combined with operational improvements, that meant pre-tax profits climbed a tenth to £15.9m, if you exclude exceptional costs and amortisation. Lavendon suffered from weaker trading in parts of continental Europe, but management expects the ongoing restructuring of the German business to swing into profit during the traditionally stronger second half.

This is subscriber only content
Start your trial to keep reading
PRINT AND DIGITAL trial

Get 12 weeks for £12
  • Essential access to the website and app
  • Magazine delivered every week
  • Investment ideas, tools and analysis
Have an account? Sign in