Secondary Recommendation

Lavendon - Sharp increase in ROCE

October 2015

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.

Very occasionally investors are given opportunities to make a great deal of money by purchasing growth shares that offer outstanding value and one candidate that currently fits this description is Lavendon, which hires out powered access platforms to provide a safe way of working at height. While profit warnings elsewhere in its tool hire sector have kept the shares out of favour, strong interims on 28 August, which showed sharp growth in return on capital employed (a key benchmark) from 10.6% to 12.7%, could be the spark to ignite a re-rating.Founded in 1992 Lavendon is the European and Middle East leader in the rental provision of mobile elevated work platforms (MEWPs) or powered access, as it is commonly known. Its main products ...

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Mortgage Advice Bureau - Mortgage broker network growing at a scorching pace

Empresaria - Recruitment group trading on unjustified discount to rivals

Lavendon - Receives two bid approaches (January 2017)

Lavendon - Stops new investment in Saudi (October 2016)

Lavendon (September 2016)

Lavendon - Shares underpinned by tangible NAV of 105p (April 2016)

Lavendon - Strong Middle East trading defies oil slump (March 2016)

Lavendon (January 2016)

Lavendon (September 2015)

Lavendon - Shares on such a low rating that CEO has acquired nearly 107,000 shares (May 2015)

Lavendon - Shares look heavily oversold (April 2015)

Lavendon (March 2015)

Lavendon - UK & Middle East going great guns (January 2015)

Lavendon - Shares cheap on EV/EBITDA of just 5.1 (November 2014)

Lavendon (September 2014)

Lavendon - Rental Revenues increase (June 2014)

Lavendon - Powered access group sees pick up in UKâ€ˆmarket (April 2014)

Lavendon (March 2014)

Lavendon - Middle East to be leading contributor (October 2013)

Lavendon - Trades on unjustified discount to rival firms (September 2013)

Lavendon - Middle East side grows revenues 34% (June 2013)

Lavendon - â€œSelf-helpâ€ savings could increase (April 2013)

Lavendon Group - "Self-help" programme driving surge in eps growth (March 2013)

Lavendon - Sharp fall in net debt (October 2009)

Lavendon - Improvement in operating margins (January 2009)

Lavendon (October 2008)

Lavendon (August 2008)

Lavendon - Ninth eps upgrade in little (April 2008)

Lavendon - Forecasts raised again (February 2008)

Lavendon (January 2008)

Lavendon - Huge eps upgrades (October 2007)

Lavendon - Profits upgraded sharply (August 2007)

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.

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