Updates

Lavendon - Stops new investment in Saudi

October 2016

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.

The shares bounced after Lavendon’s interims surprised investors, with revenues rising 13% to £134.2m thanks largely to the £20m extra capex on new machines deployed late last year. Pretax profit increased 10% to £15.9m, while eps rose 12% to 7.4p. Net debt rose from £119m to £148.9m (net debt : EBITDA still a conservative 1.61x), while ROCE of 12.2% remains well ahead of its 9.2% cost of capital.In the UK (45% sales) turnover increased 7% to £52.2m while profits rose 8% to £9.5m. CEO Don Kenny notes that it outperformed UK construction where GDP declined 0.8% and he’s still waiting for that post election bounce plus big infrastructure projects like HS2 to start. Market share ga ...

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Lavendon - Receives two bid approaches (January 2017)

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 - Sharp increase in ROCE (October 2015)

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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