|
Van Elle Holdings PLC on Monday posted weaker earnings amid improved revenue, but expressed confidence in meeting full-year market expectations for profit. The Nottinghamshire, England-based ground engineering contractor reported £1.7 million in pretax profit for the six months to the end of October, down 18% from £2.0 million a year earlier. Revenue however grew 16% to £73.4 million from £63.4 million, with this driven by General Piling and Specialist Piling & Rail. The company hailed its ‘resilient performance’ despite continued headwinds in end markets and ‘a backdrop of macroeconomic uncertainty’. The weaker profit amid improved revenue is attributed to a combination of higher costs and lower income. Cost of sales rose 23% to £53.7 million, while Van Elle saw other operating income decline 31% to £1.0 million from £1.5 million. Finance expenses rose to £218,000 from £102,000, while finance income fell to £59,000 from £100,000. The company declared an interim dividend of 0.4 pence per share, flat with the prior year. Looking ahead, Van Elle noted its order book is up 7.9% at £44.9 million as at October 31, from £41.6 million a year prior. The company said this excludes framework agreements and preferred bidder positions. The company said market conditions ‘remain challenging’ but it is confident in hitting market expectations for the full-year. Van Elle noted its company compiled analyst consensus for financial 2026 underlying pretax profit of £3.0 million. This would be down 43% from £5.3 million achieved in financial 2025. Shares in Van Elle were down 0.2% at 36.42 pence on Monday morning in London. ‘We are pleased with the progress made during the first half of the year, and despite the challenges faced in the wider industry, the Group is starting to see signs of recovery in its core markets. With a strategic focus on increasing exposure to energy and water, alongside early signs of improving housing and residential market confidence, the group is well positioned to deliver strong growth over the medium term,’ said Chief Executive Mark Cutler. ‘The disposal of our Canadian operations in December allows us to focus on the significant prospects in the UK with clear capital allocation priorities, supported by a growing number of strategic customer partnerships and long-term frameworks.’ Van Elle agreed to sell its Canadian subsidiary for C$4.7 million, about £2.5 million. This sale comprised an initial cash payment of C$2.7 million and a deferred cash payment of C$2.0 million due by July 31 next year. The sale of Van Elle Canada Inc was to 1560169 BC Ltd, a special purpose vehicle managed by Canadian rail contractor Remcan Projects LP. The disposal completed on December 19. Copyright 2026 Alliance News Ltd. All Rights Reserved.
|
