Loxam has reported a 25% fall in revenues to €440 million for the second quarter of 2020, as a result of Covid-19.

Europe’s largest rental company said that business levels gradually returned through the quarter, with a year-on-year fall of 7% in June compared to a 39% reduction in April. First half revenues were down 17%.

The business anticipates that revenues will continue to recover in the second half of the year, and said that in the long term the construction industry will benefit from government stimulus packages.

Loxam has reduced capital expenditure and carried out cost cutting measures since mid-March, and expects a positive free cash flow in Q2 2020. It added that its cash and cash equivalents on 30 June were expected to be greater than €800 million, with its net debt to EBITDA ratio below 5.2x, compared to 4.7x as of 31 December 2019.

It said it was “evaluating all potential options to optimise its financing structure. The Group may from time to time and depending on market conditions and other factors, repurchase its Notes, and could also consider a partial or full redemption on certain tranches.”

Publication of its full second quarter results will be on 25 August.