Lavendon takes £1.25m hit to quit Spain
Lavendon has made a "strategic decision" to leave the Spanish powered access market, which will cost it £1.25m.
The Lutterworth engineering business said the "weak long-term outlook" in Spain led to the decision that "the capital currently invested in our Spanish operation will achieve better returns if substantially re-deployed to our other markets".
Although the move will cost the company £5m, it expects to recoup much of this through the disposal of its fleet, leaving a £1.25m shortfall.
Despite the weaker performance in Spain, Lavendon said its revenue for the six months to 30 June 2011 grew by 8 per cent year-on-year.
The company said: "The first half has seen a solid improvement in both revenues and margins.
"Whilst mindful of the continuing economic uncertainties, we believe that if the current momentum in our underlying trading is maintained, coupled with the anticipated improvement in our operational efficiency, the results for the year will exceed the board's previous expectations."
