Lavendon issues new shares as revenues fall

Lavendon, the parent company of Nationwide and EPL Skylift, is looking to raise more than ВЈ80m by issuing new shares as it sees an 11% slide in revenues over the first 10 months of the year compared with the same period in 2008.
 
Like-for-like revenue in the UK fell by 22% in the first ten months or 28% after making adjustments for the acquisition of The Platform Company (completed in April 2008) while the formation of EPL Skylift has removed around ВЈ1.5m of annual costs. Chief executive Kevin Appleton said there were no imminent plans for further radical changes and capital expenditure for the year will be around ВЈ5m more than disposals.

Spain recorded the biggest drop in revenue (41% or 33% in sterling terms) while in Germany the fall was 13% and France and Belgium were down by 19%. Lavendon’s Middle East operation recorded a 20% rise in turnover, which equates to a sterling increase of 45%. 

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The company also announced it is to raise £53.9 million (before expenses) by an Open Offer of 77 million New Ordinary Shares at 70p and another £26.9m through a Firm Placing of 38.5 million shares. The 70p price tag represents a 45% discount on Lavendon’s 128p closing price on 18 November and once the New Share are admitted for trading on 14 December, the expected share price will be 88p.

The money raised will be used to reduce the company’s net debt which currently stands at £267m. Group finance director Alan Merrell expects the share offer and the ongoing debt reduction from its current trading will see net debt stand at £180m by the end of the year.

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