RNS Number:2335I
Lavendon Group PLC
04 March 2003




4 March 2003
                      Lavendon Group plc

                   2003 Preliminary Results

Lavendon  Group  is Europe's market leader in  the  rental  of
powered  access  equipment. Powered  access  provides  a  high
degree  of  flexibility,  thereby reducing  labour  costs  and
saving  both  time and money. The equipment  is  quick,  safe,
convenient and highly manoeuvrable. Consequently,  it  is  now
used  to  provide  temporary aerial access  in  a  variety  of
applications  and is fast becoming industry's favoured  option
when   compared   to  traditional  access  methods   such   as
scaffolding,  ladders and aluminium towers. It is  also  ideal
for  a  wide  range of other applications including industrial
and building maintenance, construction, sign erection, outside
broadcasting,  telecommunications, tree  surgery  and  highway
maintenance.

Results


-   Turnover increased by 14% to #103.0m (2001: #90.1m)
-   Operating profits, before exceptional costs of #12.0m (2001: #14.9m)
-   Operating profit, after exceptional costs of #10.8m (2001:  #14.3m)
-   Profit before tax and exceptional costs of #6.0m (2001:#9.9m)
-   Profit before tax and after exceptional costs of #4.8m (2001: #9.3m)
-   EBITDA remained solid at #35.3m (2001: #35.4m).
-   Earnings per share before exceptional costs of 11.69p (2001: 18.87p)
-   Earnings per share after exceptional costs of 9.57p (2001: 17.76p).
-   Dividend of 4.70 pence per share (unchanged total dividend of 6.95 pence per 
    share)
-   Total number of active customers increased by 15% to just over 34,500 
    (2001: 30,000)
-   UK revenues grew by 12% to #60.7m (2001: #54.3m) and operating profits, 
    before exceptional costs, increased to #13.3m (2001: #12.5m). After 
    exceptional costs, operating profit increased to #12.4m (2001: #12m)
-   Combined revenues from France, Spain and Austria increased to #7.8m 
    (2001: #3.0m) with operating losses reducing from #1.1m to #0.3m.

Outlook

David Price, Executive Chairman, said today:
"Overall, we are broadly in line with expectations. We  remain
convinced that the long-term case for powered access rental in
Europe is compelling. With an estimated demand growth of  over
400%  in the last 10 years, this relatively young industry  is
widely  expected  to return to this trend  once  the  existing
combination of a slowing economic environment, aggravated by a
short-term   over-supply  of  powered  access   equipment   is
resolved.

Given  the operational gearing of the business, an improvement
in  economic  conditions and demand would have  a  significant
positive impact on the Group's profitability. We have  a  good
business  model,  excellent  staff  and  a  market  with  good
medium/long-term prospects which we believe will enable us  to
weather the present conditions and emerge in good shape."

For further information:

Lavendon Group plc                               020 7067 0700
David Price, Executive Chairman      From 5 March 01455 558874

Kevin Appleton, Chief Executive
Alan Merrell, Finance Director

Weber Shandwick Square Mile                      020 7067 0700
Peter Corbin


CHAIRMAN'S STATEMENT


Summary

The last twelve months have been a period of consolidation for
the  Group following the major fleet investment programme that
occurred  during  2000 and 2001. Management focus  during  the
year  centred  mainly upon Germany, where economic  conditions
remain  weak  and  results  were very  disappointing,  with  a
trading  loss for the year being incurred for the  first  time
since the business was established in 1996. Trading in the UK,
Spain  and  the Middle East was good, whilst France made  some
encouraging progress during the second half of the year.

Potential Offer Discussions

The  Board  announced  on 23 August 2002 that  an  unsolicited
approach  had been received which might lead to an  offer  for
the  company. Subsequently, the executive directors were given
leave to explore the possibility of a management buy-out and a
preferred  private equity provider was selected to work  with;
however, it became clear that, given the situation in Germany,
there  was  no  certainty  that  an  offer,  which  would   be
acceptable to shareholders, would be made. At that stage,  the
Board  unanimously agreed on 3 February 2003 to terminate  all
discussions  rather than risk damage to the  business  through
continuing  uncertainty and distraction of  management,  staff
and  customers, which could have continued for many weeks,  if
not months, and still not resulted in an acceptable offer.

The  Board determined, therefore, that management should focus
exclusively upon delivering performance, which we  believe  to
be  the  most  appropriate way to enhance  the  value  of  the
company to the benefit of all shareholders.

Financial Results

Trading results for the twelve months to 31 December 2002 were
broadly  in  line  with  management's  expectations.  The
turnover  for  the  Group increased by 14% to  #103.0  million
(2001:   #90.1   million),  with  operating   profits   before
exceptional  items  declining to #12.0  million  (2001:  #14.9
million).  The exceptional items totalled #1.2 million  (2001:
#0.6  million)  and related mainly to restructuring  costs  in
Germany. The balance comprised fees payable to our advisors in
relation to the offer discussions, and fees relating to the re-
negotiation  of our banking facilities. The operating  profits
after  exceptional  items  were  #10.8  million  (2001:  #14.3
million).  The  Group's  operating margin  before  exceptional
items reduced to 11.7% (2001: 16.5%), due to a combination  of
the expansion of the cost base following the completion of the
accelerated  investment  programme, and  insufficient  revenue
growth  being  generated  from  this  increased  asset   base,
particularly  in  Germany, where increases in activity  levels
were largely absorbed by hire rate reductions.

Despite  the  reduced operating profit, the  Group's  earnings
before  interest, tax, depreciation and amortisation  (EBITDA)
remained  solid at #35.3 million (2001: #35.4 million).  After
movements  in working capital, the net operating cashflow  was
#28.8 million (2001: #35.6 million), the reduction against the
previous year reflecting an increase in trade receivables as a
result  of the revenue growth and the reversal of a VAT timing
benefit  in  previous years relating to the  fleet  investment
programme.  Each  of  the  Group's  operations  remained  cash
generative during the year.

Profit  before  tax  and exceptional items  was  #6.0  million
(2001:  #9.9 million). After the exceptional items, the profit
before tax was #4.8 million (2001: #9.3 million).

Earnings per share before exceptional costs were 11.69p (2001:
18.87p)  and  after  exceptional  costs,  were  9.57p   (2001:
17.76p).

A  new  accounting standard on deferred tax, FRS 19, has  been
adopted  by  the  Group.  This  new  standard  requires   full
provision to be made for deferred tax rather than the  partial
provision  method  previously used. The accounting  adjustment
required  by  FRS  19  has been dealt with  by  a  prior  year
adjustment,  the effect of which is to increase  the  deferred
tax  provision  at  31 December 2001, and  thereby  lower  the
Group's  net assets by #3.5m. This adjustment does not  impact
the  timing or the amount of tax the Group will pay in  future
years.

Net  debt  at  the  year end was #114.1 million  (2001:  #98.4
million),  with  approximately #5.3 million  of  the  increase
resulting from the translation of debt denominated in Euros at
a  weaker Sterling to Euro exchange rate at 31 December  2002.
The net debt to equity ratio of the Group increased to 125% at
the  year-end  (2001:  110%), as amounts  owing  to  equipment
suppliers were paid and the adoption of FRS 19, which had  the
effect of reducing the Group's net assets, were factored  into
the  calculation.   Following our recent investment  programme
the  Board  considers there is unlikely to be a need  for  any
significant   capital   expenditure  in   the   near   future.
Accordingly,  the cash flows being generated  from  operations
will,  after  settlement  of the amounts  owing  to  equipment
suppliers  brought forward from 2002 of #12.3  million  and  a
minimal  capital expenditure programme in 2003, be applied  in
reducing our debt levels and, in turn, our interest costs. All
of  our  debt  facilities  remain in  place  and  the  revised
covenants  negotiated  with our banks  provide  the  necessary
financial  flexibility  to continue  the  development  of  the
business.

Dividend
A  final  dividend of 4.70 pence per share is being  proposed,
which,   if  approved,  will  be  paid  on  2  June  2003   to
shareholders  on  the  register on 14 March  2003.  The  total
dividend  of 6.95 pence per share will represent an  unchanged
position over 2001.

Business Review

Demand  for  powered access is still increasing across  Europe
and  the  Middle East. Revenue growth for the Group  was  14%,
with  the number of active customers growing by 15% to give  a
total  active customer base of over 34,500, compared to 30,000
in 2001.

UK

The  UK  is  our largest market and the business continues  to
perform  well.  Revenues grew by 12% to #60.7  million  (2001:
#54.3 million) and the active customer base expanded by 6%  to
14,367.  Average  hire  rates remained  stable  and  operating
profits, before exceptional costs, in the UK increased  by  6%
to  #13.3  million  (2001: #12.5 million). Operating  margins,
before  exceptional costs, reduced to 22%  (2001:  23%)  as  a
consequence of the full year costs of our investment programme
in   2001.  After  exceptional  costs  the  operating  profits
increased  by 4% to #12.4 million (2001: #12.0 million),  with
operating margins reducing to 21% (2001: 22%).


The  strategy for our UK business now centres around  two  key
areas:-

1.Driving fleet utilisation harder by rolling out customer
  development programmes to a wider customer base in order  to
  improve operational leverage.
2.Securing  further operational improvement  via  our  key
  performance  indicator reporting systems aimed at  improving
  margins and customer service benefits.

To support the strategy to increase utilisation levels, the UK
rental  fleet will not be expanded during 2003, as our planned
growth  objectives for the current year can be  achieved  from
the  fleet and network already in place. Furthermore,  we  are
encouraged by the continued growth of powered access generally
in  the  UK in spite of considerable current weakness  in  the
manufacturing sector, one of our major markets.
We  expect the year ahead to be a challenging period in regard
to  the  economic  environment  generally,  but  the  business
fundamentals are strong and we believe that the plans that are
in  place  will allow the UK business to make further progress
during the year.

Germany

Market conditions in Germany have not materially changed  from
the  situation  we reported previously. The lack  of  business
confidence  across much of the country is causing  significant
cutbacks  in repair, maintenance and refurbishment  programmes
and  this,  combined with a declining construction sector,  is
seriously impeding our ability to grow revenues. Progress  has
been  extremely difficult and frustrating and is very  much  a
case of two steps forward followed by three steps backward  in
what  are  proving to be very persistent and severe headwinds.
We  were  able to expand the active customer base  by  13%  to
18,219  in  the  year, but because average customer  workloads
were  down,  this resulted in an increase of only  9%  in  the
number  of machines on hire. The bulk of this improvement  was
absorbed  by  a 7% softening in hire rates, caused  by  excess
capacity chasing insufficient total demand growth. The  result
was  a  disappointing 2% growth in revenue for the year  which
was  inadequate to cover the increased cost base and  produced
an  operating  loss  for  the  year  of  #1.9  million  (2001:
operating profit of #2.4 million). After exceptional costs, the
operating loss was #2.3 mllion (2001: operating profit of #2.4
million).

The   combination  of  equipment  oversupply  and   widespread
expenditure  cutbacks from many of our customers reflects  the
continued  challenges  presented  by  such  a  weak   economic
environment.

Action  was taken during the second half of the year to reduce
the  cost  base of the business, through headcount reductions,
fleet   redeployment  to  markets  with  stronger   short-term
prospects and other cost-saving measures, giving, in total, an
annualised  saving of #1.2 million. The consequence  of  these
actions,  combined with a seasonal upturn in  activity  during
the  second  half  of  the year, reduced the  operating  loss,
before  exceptional costs, to #0.3 million for the second  six
months,  compared to a loss of #1.6 million in the first  half
of  the year. After exceptional costs, the operating loss  for
the second half was #0.7 million compared to #1.6 million from
the first half of the year.

The cornerstone of our strategy for the German business is  to
continue  the  implementation of the business operating  model
which  has been so successful in the UK. The transfer  process
is well advanced in terms of customer service standards, fleet
maintenance  procedures  and  networking  capability  (a  full
national  network is now in place). Furthermore, the  adoption
in Germany of the National Account Management Programme at the
start of 2002 delivered revenue growth from this sector up 12%
on  the previous year, with an encouraging 35% growth from our
250 largest customers. To facilitate further progress, we have
appointed  a new country manager to run the German  operation.
The  crucial final piece in the equation is the implementation
of  the Group standard IT operating system, which will be live
in the second quarter of this year, which provides enterprise-
wide support for all major business processes. The benefits of
this  system should begin to impact in the second half of 2003
and along with the cost savings already described, as well  as
other ongoing performance improvements, should enable progress
to be made in 2003.

Looking  forward, we are preparing for another tough  year  in
2003. We expect to have completed the roll-out of most of  the
key management and systems improvements during the year, which
will  bring  our  German business closer to the  standards  of
operating  efficiency  available in  the  UK  business.  These
improvements enable a more responsive and systematic  approach
to  performance  management and, along with the  reduced  cost
base,  will  shore up our ability to deal with  the  unhelpful
economic conditions.

Whilst  these are clearly extremely difficult and  challenging
times,  we  nevertheless retain our strongly held belief  that
Germany has every prospect of becoming Europe's largest market
for   powered  access  rental,  and  that  our  market-leading
position will enable us to secure attractive future returns.

Rest of Europe

France

Our French business comprises a network of 5 depots (no change
from 2001) and was able to record strong revenue growth of 68%
to  #3.7 million (2001: #2.2 million) following an increase in
the  rental fleet from 425 units to 653 at the year end.  With
an  average  depot  fleet size of 130, the operation  now  has
sufficient scale to become viable without further investment.

Rental rates remain weak, but there is now a small improvement
in the competitive environment there and this, together with a
more  optimal depot fleet configuration, allowed year on  year
operating losses to reduce from #1.0  million in 2001  to #0.8
million in 2002. The improving trend in the  latter months  of
2002  is expected to continue through 2003 and further measures
are in place to support that trend.

Spain

The  Spanish operation made considerable progress  during  the
year,  with  revenues increasing to #2.9 million  (2001:  #0.5
million),  producing  an  operating  profit  of  #0.5  million
compared  to an operating loss  in  the  previous year of #0.1
million.  The rental  fleet  was increased to 494 units by the
end of the year, and now operates from a network of four depots.
Demand levels for the rental of powered access remain high and
we are encouraged by prospects for 2003.

Austria

Revenues from the Austrian business increased to #1.2  million
from  #0.3  million  in  the previous year  and  continued  to
produce a broadly breakeven trading result as a consequence of
the  increase  in  the cost base relating to fleet  and  depot
expansion.  This  business is managed as part  of  our  German
operation  and similar performance improvement programmes  are
being implemented.

The combined revenues from France, Spain and Austria increased
to  #7.8 million (2001: #3.0 million) with the operating  loss
reduced by 73% to #0.3 million (2001: #1.1 million).

The  strategy for the evolving businesses in France, Spain and
Austria  is  for a prudent development of their fleet  earning
potential,  but with fleet additions sourced exclusively  from
Group  resources  as appropriate. In addition,  we  intend  to
drive  through improvements in the quality of systems  support
available  to management by rolling out the proven IT  systems
currently  in  use  in  the UK. This has already  happened  in
Austria.

Middle East

The   region   demonstrated  good  progress,   with   revenues
increasing by 29% to #4.0 million (2001: #3.1 million).

The  operations were expanded during the year, with  a  second
depot  opening  in Saudi Arabia and our first  facility  being
established   in  Kuwait,  which  created  a   drag   on   the
profitability of the region, with operating profits  remaining
stable  year  on  year at #0.9 million (2001:  #0.9  million).
However, these new depots started to contribute positively  to
the profits of the region towards the end of the year as their
customer base development proceeded to plan.

In  the  second half of 2002, there was a distinct improvement
in  demand  levels which has continued into  2003,  due  to  a
number  of  previously  delayed oil and  gas-related  projects
commencing.  Overall,  we  are confident  that,  absent  major
geopolitical  events, further progress will  be  made  in  the
region during 2003.

Lavendon Board

Kevin  Appleton  was appointed Group Chief  Executive  at  the
start  of last year, whilst I remain as Executive Chairman  of
the  Group. By the end of the current year, we expect to  have
completed  the  implementation in Germany  of  the  management
organisation  structure  changes and  the  Group  standard  IT
systems,  which  will bring the business into  line  with  the
operating model used so successfully in the UK.

Once these important changes and improvements are in place and
demonstrated,  I  intend to move to a  position  of  part-time
Executive Chairman, probably with effect from 1 January 2004.

Outlook

We remain convinced that the long term case for powered access
rental  in  Europe  is  compelling. With an  estimated  demand
growth  of  over  400% in the last 10 years,  this  relatively
young industry is widely expected to return to this trend once
the  existing  combination of a slowing economic  environment,
aggravated  by  a  short term over-supply  of  powered  access
equipment,  is  resolved.  Market growth  should  then  return
across  Europe  with  the potential for  a  further  five-fold
increase   before  equivalent  levels  of  uptake   to   those
experienced today in North America are reached.

We  believe the years 2001 to 2003 will represent a period  of
relatively slow evolution in demand for powered access and our
operating  strategy  has been flexed to deal  with  this.  The
phase of accelerated capital investment to secure key European
markets is now at an end. Our current focus turns naturally in
favour  of   improving the profitability of  the  business  in
these  markets  and utilising the Group's cashflow  to  reduce
current debt levels.

Given  the operational gearing of the business, an improvement
in  economic  conditions and demand would have  a  significant
positive impact on the Group's profitability.

Trading  so far this year has continued the pattern  of  2002,
with  subdued  demand in Germany and a generally  satisfactory
start  elsewhere, in the traditionally quiet period  following
the Christmas and New Year holiday. Overall, we are broadly in
line  with  our  expectations. We remain  cautious  while  the
general   atmosphere   of  uncertainty  prevails.   We   have,
nevertheless,  a good business model, excellent  staff  and  a
market  with good medium/long term prospects which we  believe
will enable us to weather the present conditions and emerge in
good shape.

David Price
Executive Chairman
3 March 2003





Consolidated profit and loss account
for the year ended
31 December 2002
                                                                           As restated
                                                                     2002         2001
                                                                     #000         #000
________________________________________________________________________________________

Group turnover                                                    103,033       90,094
Cost of sales                                                     (57,368)     (49,703)
________________________________________________________________________________________

Gross profit                                                       45,665       40,391
Operating expenses before exceptional operating expenses          (33,661)     (25,517)
Exceptional operating expenses                                     (1,199)        (570)
________________________________________________________________________________________
Net operating expenses                                            (34,860)     (26,087)
________________________________________________________________________________________

Group operating profit                                             10,805       14,304
Investment income                                                       8           19
________________________________________________________________________________________

Profit on ordinary activities before interest                      10,813       14,323
Interest payable                                                   (6,009)      (4,977)
________________________________________________________________________________________

Profit on ordinary activities before taxation                       4,804        9,346
Taxation on profit on ordinary activities                          (1,263)      (2,976)
________________________________________________________________________________________

Profit on ordinary activities after taxation                        3,541        6,370
Dividends                                                          (2,572)      (2,572)
________________________________________________________________________________________

Profit retained for the year                                          969        3,798
________________________________________________________________________________________

Earnings per ordinary share - basic                                  9.57 p   17.76 p
                            - diluted                                9.55 p   17.73 p
                            - before exceptional operating expenses  11.69p   18.87 p
________________________________________________________________________________________


Statement of total recognised gains and losses
Profit on ordinary activities after taxation                         3,541    6,370
Currency translation differences                                       301     (199)
________________________________________________________________________________________

Total recognised gains and losses for the year                       3,842    6,171
________________________________________________________________________________________

Prior year restatement                                              (3,532)       -

Total gains since the last annual report                               310     6,171
________________________________________________________________________________________

There is no difference between the profit on ordinary activities before taxation and
the retained profits as stated above, and their historical cost equivalents.

All of the Group's trading activities relate to continuing operations for the year.





Consolidated balance sheet
at 31 December 2002

                                                                  As restated
                                                              2002       2001
                                                              #000       #000
______________________________________________________________________________
Fixed assets
Intangible assets                                              957        839
Tangible assets                                            216,471    212,279
______________________________________________________________________________

                                                           217,428    213,118
Current assets
Stocks                                                         886        732
Debtors                                                     27,152     23,072
Cash at bank and in hand                                     2,916      2,065
______________________________________________________________________________

                                                            30,954     25,869

Creditors - amounts falling due within one year            (38,619)   (45,950)
______________________________________________________________________________

Net current (liabilities)                                   (7,665)   (20,081)
______________________________________________________________________________

Total assets less current liabilities                      209,763    193,037


Creditors - amounts falling due after more than one year) (104,842)   (90,507)

Provisions for liabilities and charges                     (14,001)   (12,880)
______________________________________________________________________________

                                                          (118,843)  (103,387)

______________________________________________________________________________
Net assets                                                  90,920     89,650
______________________________________________________________________________

Capital and reserves
Called up share capital                                        370        370
Share premium account                                       70,412     70,412
Capital redemption reserve                                       4          4
Profit and loss account                                     20,134     18,864
______________________________________________________________________________
Equity shareholders' funds                                  90,920     89,650
______________________________________________________________________________



Consolidated cash flow statement
for the year ended 31 December 2002

                                                               2002         2001
                                                               #000         #000
_________________________________________________________________________________
Net cash inflow from operating activities                    28,811       35,587
_________________________________________________________________________________

Returns on investment and servicing of finance:
Interest received                                                 8           19
Interest paid on bank borrowings                             (3,813)      (2,777)
Interest paid on hire purchase and finance lease agreements  (2,009)      (2,093)
Interest paid on bills of exchange                                 -          (3)
_________________________________________________________________________________
                                                              (5,814)     (4,854)
Taxation:
United Kingdom corporation tax paid                             (280)       (187)


Capital expenditure and financial investment:
Purchase of tangible fixed assets                            (23,505)    (69,740)
Sale of tangible fixed assets                                  4,836         697
Purchase of intangible assets                                   (200)          -
_________________________________________________________________________________
                                                             (18,869)    (69,043)

Equity dividends paid                                         (2,572)     (2,172)
_________________________________________________________________________________
Net cash inflow / (outflow) before management
of liquid resources and financing                              1,276     (40,669)

Financing:
Issue of ordinary shares                                           -      29,136
New loans                                                     11,660      51,333
Repayment of loans                                                 -     (28,000)
Repayment of principal under hire
purchase and finance lease agreements                        (12,054)      (9,752)
Repayment of principal under bills of exchange                     -           69
_________________________________________________________________________________

                                                                (394)      42,648

Expenses of share issue                                            -         (885)

_________________________________________________________________________________

Net cash (outflow) / inflow from financing                      (394)      41,763
_________________________________________________________________________________

Increase in cash during the year                                 882        1,094
_________________________________________________________________________________


Reconciliation of operating profit to net cash inflow from operating activities


                                                       2002         2001
                                                       #000         #000

Operating profit                                     10,805       14,304
Amortisation                                            132          127
Depreciation on tangible                             24,314       20,971
fixed assets
Gain on sale of tangible                              (292)        (299)
fixed assets
(Increase) in stocks                                  (147)        (176)
(Increase) in trade debtors                         (2,782)      (3,416)
(Increase) / decrease in prepayments,                 (390)        1,144
accrued income and other debtors
(Decrease) / increase in                            (1,781)          453
trade creditors
(Decrease) / increase in taxation, social           (1,048)        2,479
security, accruals and other creditors
                                                 ___________    __________
Net cash inflow from operating activities           28,811        35,587
                                                 ___________    __________


Reconciliation of net cash flow movement to movement in net debt


                                                       2002         2001
                                                       #000         #000

Net increase in cash                                    882        1,094
Inflow / (outflow) from increase in debt                394      (13,512)
                                                 ___________    __________

Change in net debt resulting from cash flows          1,276      (12,418)

Non-cash items:
New hire purchase and finance lease agreements      (11,591)     (17,084)

Currency translation differences - on cash and
net debts                                            (5,324)       1,133
                                                 ___________    __________

Movement in net debt in the period                  (15,639)     (28,369)

Net debt at 1 January                               (98,440)     (70,071)
                                                 ___________    __________
Net debt at 31 December                            (114,079)     (98,440)
                                                 ___________    __________





Analysis of changes in net debt during the year


                                                 At                            Currency            At
                                          1 January             Other non-  translation 31 December
                                               2002  cashflows  cash items  differences        2002
                                               #000       #000        #000         #000        #000
                                           _________   _________   _________    _________  _________
Cash at bank and in hand                      2,065        748           -          103       2,916
Bank overdrafts                                (328)       134           -            -        (194)

                                              1,737        882           -          103       2,722

Bank debt due after one year                (63,855)   (11,660)          -       (4,513)    (80,028)
Hire purchase and finance lease agreements  (36,322)    12,054     (11,591)        (914)    (36,773)
                                           _________   _________   _________    _________  _________
                                           (100,177)       394     (11,591)      (5,427)   (116,801)

                                           _________   _________   _________    _________  _________
Total                                       (98,440)     1,276     (11,591)      (5,324)   (114,079)
                                           _________   _________   _________    _________  _________

Capital creditors in respect of fixed asset additions decreased by #8,353,000.



Segmental analysis
Turnover by geographical destination:

                                                   2002      2001
                                                   #000      #000
__________________________________________________________________

United Kingdom                                   60,886    53,907
Rest of Europe                                   38,113    33,029
Rest of World                                     4,034     3,158
__________________________________________________________________
Total Group turnover                            103,033    90,094
__________________________________________________________________

Turnover and operating profit by geographical origin:


                                                  2002                  2001
                                                    Operating             Operating
                                           Turnover    profit   Turnover     profit
                                              #000       #000       #000       #000
_____________________________________________________________________________________

United Kingdom                              60,736     12,433     54,291     11,969
Rest of Europe                              38,263     (2,511)    32,665      1,451
Rest of World                                 4,03        883      3,138        884
_____________________________________________________________________________________
Total Group turnover and operating profit  103,033     10,805     90,094     14,304
_____________________________________________________________________________________


Net assets by geographical origin:


                                                          As restated
                                                      2002       2001
                                                      #000       #000
______________________________________________________________________

United Kingdom                                      28,381     28,618
Rest of Europe                                      60,687     59,432
Rest of World                                        1,852      1,600
______________________________________________________________________
Total Group net assets                              90,920     89,650
______________________________________________________________________








Notes

  1. The consolidated accounts of the Group are prepared under the historical
     cost convention and in accordance  with applicable  Accounting Standards
     in the United Kingdom. The Group has adopted Financial Reporting Standard
     19 (FRS 19) "Deferred Taxation" during 2002 which requires full provision
     for deferred taxation.  FRS19 replaces the accounting policy SSAP15 which
     previously required deferred taxation to be provided  on  a partial basis
     to reflect taxation  timing differences to the extent that they could be
     anticipated to be reversed  in future years. The effect of this change in
     accounting  policy  is to increase the deferred  taxation provision in the
     prior years and hence reduce retained profits by an amount of #3.532m, of
     which #0.173m related to the year to December 2001.  The effect of the
     change in accounting policy in the 2002 has been a reduction in the 
     deferred taxation provision and hence an increase in retained profits by an 
     amount of #0.169m.

  2. Earnings per share calculations are based on:

     (a) the profit for the year, after deducting taxation, of #3,541,000 (2001:
         #6,370,000); and
     (b) the weighted average of 37,003,383 ordinary shares in issue during the
         year (2001: 35,869,978)

     For  diluted  earnings  per share, the  weighted  average number of 
     ordinary shares in issue is adjusted to assume issue of all dilutive 
     potential ordinary shares, based on the  average market price of the 
     Company's shares of #1.790 (2001: #3.536). The Group has only one category 
     of dilutive potential ordinary shares: those options granted  to  employees 
     where the exercise price is less than  the  average market price of the 
     Company's ordinary shares during the year. The effect of this dilution is 
     to increase the weighted average number of ordinary shares to 37,080,025 
     (2001: 35,934,143).

     Earnings  per share before exceptional operating expenses has been 
     calculated after adjustment for exceptional items  and  the  related tax 
     effect based  on the  basic number of shares in issue.

  3. The financial information set out in this announcement does not constitute 
     the Group statutory accounts for the year ended 31 December 2002 or 
     31 December 2001, but is derived from these accounts.  The statutory 
     accounts for the Group for the year ended 31 December 2002 and 2001 were 
     reported on by the auditors without qualification and such reports did not 
     contain any statement under section 237(2) or (3) of  the Companies Act 
     1985.  The accounts for 2001 have been delivered to  the Registrar of 
     Companies and those for 2002 will be delivered in due course.

  4. The Annual General Meeting of Lavendon Group plc will be held at 
     PricewaterhouseCoopers LLP, Cornwall Court, 19 Cornwall Street, 
     Birmingham B3 2DT on 15 April 2003 at 10:30am.




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