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Lavendon

March 2014

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • LVD
  • Price:
  • 209p
Lavendon has spent the last two years getting lean, mean and fit. Costs have been cut, performance improved and it is well set for growth. 2013 was a bit of a funny year in terms of weather conditions but the results were still excellent. Revenues were more or less flat at £237.5m but helped by the operational efficiency program, pretax profit was up 9% to £30m with eps up 12% to 14.4p. Operating margins were stable at 14.9%. Net debt was broadly unchanged at £97.7m despite spending £20m on expansion capital and a further £35m on maintenance capital. Chief executive Don Kenny says this gives the company not just a well invested fleet with an average age of just 7.1 years (which any bidder would love to pay a premium for- Editor) b ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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