UPDATE 1-Lavendon 10-mth sales up, sees FY results in line

Thu Nov 13, 2008 2:58am EST
 
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* 10-month revenue up 36 pct

* Sees full-year results in line with its view

* To focus on debt reduction

Nov 13 (Reuters) - Lavendon Group Plc (LVD.L) said on Thursday its revenue for the 10 months ended Oct. 31 rose 36 percent over the same period last year on improved operating margins, and it planned to focus on debt reduction.

The company, which hires out platforms used in construction, said it remained confident of delivering results in line with its expectations for the current year despite difficult trading conditions across its UK and European operations. "Given the increasingly uncertain economic outlook, we have revised our operational plans for 2009 to focus more aggressively on cash generation and thereby debt reduction," the company said in a statement.

Lavendon's current net debt stands at about 260 million pounds ($390 million).

The company plans to cut its capital spending programme for 2009 by 30 million pounds and focus the remaining investment on its expanding Middle East operation and other areas that offer growth opportunities, it added.

Shares of Lavendon closed at 157.75 pence on Wednesday on the London Stock Exchange. (Reporting by Tresa Sherin Morera in Bangalore; Editing by Mike Miller)

 

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