Lavendon Group plc, which operates as Nationwide in the UK, reported that its UK rental revenues in the six months to 30th June 2016 increased by 7% to 拢57.2m (2015: 拢53.3m) with underlying operating profit increasing by 8% to 拢9.5m (2015: 拢8.8m) and margins improving to 15.7% (2015: 15.2%).
Revenue growth, which increased as the year progressed, was driven by winning business from smaller competitors. These gains 鈥渕ore than absorbed a 3% year on year softening in pricing鈥�, the company said.
Moving transport operations 鈥� the delivery and collection of machines from customers鈥� sites 鈥� back in-house had generated significant efficiency gains, it said. 鈥淭hese operational efficiency improvements have increased the availability of the UK fleet by almost 5% in the first half, effectively releasing around 500 extra machines for hire.鈥�
The UK accounts for 45% of Lavendon鈥檚 group rental revenues. The company as a whole reported a 13% rise in group revenue for the first half to 拢134.2m (2015: 拢119.1m) and pre-tax profit up 10% to 拢15.9m (2015: 拢14.5m).
Net debt climbed 25% during the six-month period to reach 拢148.9m.
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