Lavendon Share Discussion Threads

[spud] 02/8/2016 09:23

Oh dear! I'd buy some more but my boll@cks aren't big enough! Just remind me of Peel Hunt's price target again Riv.... :- /spud

[davidosh] 27/7/2016 16:13

This company certainly know how to score own goals with investors.....Why have interim results out on a Friday before Bank Holiday Monday ? There will be nobody interested in meeting them in the City and will remain unloved

[spud] 27/7/2016 15:00

It's called SETSmm.

spud

[che7win] 27/7/2016 14:01

Buying at 125p and then shortly after selling at 113p, what a strange market LVD is.

[beangrinder] 25/7/2016 14:47

bend1pa. The figure you quote is after £90m capex. We know about the expansion plans. EBITDA is £86m and interest cover is very high so debt doesn't seem an issue here.

[bend1pa] 25/7/2016 13:30

It's hardly attractive when you consider last year's cashflow statement.

At 31st Dec 2015, the operating cashflow swung from £13,563 to (£21,073) shortfall. So divs were wholly financed from drawing on their loan, not from profits. Their latest statement says that net debt has increased sharply to £150m, which gives gross gearing of 67%. Strip out intangibles and that gearing is even higher, so they're becoming heavily borrowed. Little wonder the market is getting nervous.

[rathlindri] 25/7/2016 08:39

Makes one wonder what planet they are on....

[rivaldo] 25/7/2016 08:35

Peel Hunt reiterated their Buy and 275p target price:

[adamb1978] 23/7/2016 21:13

Doesnt NXR have huge pension deficit? That's already going to hold back a small-cap's multiple, regardless of how well positioned the operating business is.

[bsharman3] 21/7/2016 20:23

me too - hold both NXR and LVD...

[davr0s] 21/7/2016 19:37

Yep I have held NXR for 3+ years too and it's done naff all

[imranawan] 21/7/2016 09:45

Yep a frustrating hold and for my sins I also hold NXR which is very similar and does very little, also good value.

[spud] 21/7/2016 09:35

Yep it's a frustrating one that's for sure. Value always wins out in the end although a large dose of patience is required here! spud

[davr0s] 21/7/2016 08:45

See that normal service has been resumed here with this share - frustrating holding

[spud] 15/7/2016 15:24

Undervalued imo. Taken a few more.

spud

[rivaldo] 15/7/2016 07:21

Another good review of LVD's update here:



"A bubbly trading update has sent Lavendon Group’s (LSE: LVD) share price shooting 9% higher in Thursday trade.

The power equipment provider — which collapsed to four-year lows last week — advised that total revenues leapt 15% during January-June, while rental revenues advanced 13% from the year-ago period.

Lavendon therefore “remains confident of delivering its expectations for the full year,” it advised, and with good reason: market share grabs are helping to drive sales higher in the UK, Lavendon’s largest single market.

Meanwhile, investors fearing a Brexit hangover can take heart from Lavendon’s hefty overseas exposure. The Middle East and Continental Europe are responsible for 29% and 27% of group revenues respectively, and sales in these regions continued to climb in the first half.

I believe a forward P/E rating of 6.8 times makes Lavendon an attractive stock selection looking ahead."

[mikepompeyfan] 14/7/2016 15:08

Institutions keep offloading which depresses the share price

[qs99] 14/7/2016 14:43

looks odd I agree and have topped up accordingly...

[zho] 14/7/2016 10:56

My opinion - the valuation looks strikingly cheap to me. I really cannot understand why this share price has been so beaten up, despite continued decent updates from the company. The market seems to be pricing in bad news, which just isn't happening, so far anyway.

[alter ego] 14/7/2016 10:31

re beangrinder's point, I expect management to manage the business not the share price If they have spare cash not required to increase earnings, then a divi or a buy back is reasonable but not at the expense of delivering what customers need and are willing to pay for.

[beangrinder] 14/7/2016 10:15

Anyone else wondering if the company should be buying some of its shares to hold in treasury (or for cancellation)? The return to existing shareholders would be higher than continuing to expand the fleet (whilst on a sub 7 PE).

[rivaldo] 14/7/2016 10:10

Agree the above - good, solid update today.

Very positive phrases used, including "the encouraging trading performance in the first half", and "the Board remains confident of making further progress during the year and delivering on its expectations for 2016."

Some minor negatives like margin progression being tempered by added investment, increased debt and exceptionals, but these all reflect the continuing growtha nd confidence of the company.

Nice note about the positive effect on LVD of sterling's weakness too.

Peel Hunt reiterate their Buy and 275p price target:

[che7win] 14/7/2016 08:01

Cant buy any online!

[adamb1978] 14/7/2016 07:57

Agree with beangrinder - reassuring update and looks stonkingly cheap at current levels. The share price is pricing in a recession across all geographies at the moment