Parent company Lavendon has reported that its UK rental revenues were آ£49.1m for the six months to 30 June 2013, down from آ£52.4m for the same period last year.
“With a lower level of major construction project work available, we have seen some pricing pressure in the market, with year on year pricing declining by around 1%,†the company said.
“Our volumes have been marginally ahead of prior year levels, although these reflect a shift in the mix of fleet on hire towards smaller units, resulting in a lower rate of revenue per hire.â€
UK operating profit fell by آ£1.1m to آ£6.1m, with the operating margin declining to 11.8% from 12.7% last year.
The board added: “Although recent sentiment regarding the UK economy has been more encouraging, we are not assuming a significant improvement in market conditions in the near term. Consequently our efforts will remain focused on improving revenue performance through structuring our work-winning resources in the most effective manner to maintain and grow our market share.â€
For the whole Lavendon group, strong growth in France and the Middle East offset softer market conditions elsewhere. Group revenue for the half-year was down just 1% to آ£113.6m, while rental revenue was up 1% to آ£108.1m. Underlying pre-tax profit was up 17% to آ£11.1m.
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