REG - Van Elle Holdings - Interim Results, Analyst Briefing & Investor Pres
29/01/2025 07:00
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RNS Number : 0297V Van Elle Holdings PLC 29 January 2025
Van Elle Holdings plc
('Van Elle', the 'Company' or the 'Group')
Interim Results for the six months ended 31 October 2024
Analyst Briefing and Investor Presentation
Van Elle Holdings plc, the UK's largest ground engineering contractor,
announces its unaudited interim results for the six months ended 31 October
2024 (the 'Period').
£m 6 months 6 months
ended ended
31 October 2024 31 October 2023
Revenue 65.2 68.2
Underlying EBITDA (1) 6.2 6.2
Underlying operating profit 2.1 2.7
Underlying operating profit margin 3.2% 3.9%
Operating profit 1.9 2.7
Underlying profit before tax 2.1 2.5
Profit before taxation 1.9 2.5
Underlying basic earnings per share (p) 1.4 1.6
Basic earnings per share (p) 1.3 1.6
Net funds (excluding IFRS 16 property and vehicle lease liabilities) (2) 3.1 8.9
Net (debt)/ funds (4.3) 1.9
Underlying return on capital employed 9.1% 10.0%
Interim dividend per share (p) 0.4 0.4
(1) Underlying EBITDA is defined as earnings before interest, tax,
depreciation and amortisation.
(2) IFRS 16 property and vehicle lease liabilities as at 31 October 2024 were
£7.4m (31 October 2023: £7.0m).
Period highlights
· Continued resilience with growing signs of improvement across end
markets despite macroeconomic backdrop and challenging market conditions.
· Revenue remained reasonably stable at £65.2m, a decrease of 4%
compared to the prior year (H1 FY2024: £68.2m).
· Underlying EBITDA consistent with previous year at £6.2m.
Depreciation increased by £0.6m due to higher asset base from recent business
acquisitions and continued capital investment.
· Strong performance in Specialist Piling and Rail, offset by
weaker volumes in General Piling and Ground Engineering Services.
· Acquisition of Albion Drilling Group in October 2024 expanded the
Group's technical capabilities and presence in Scotland, bolstering progress
in the energy sector.
· Further progress in positioning the Group to benefit from
attractive growth sectors.
· Despite further delays to the ONxpress delivery programme, Van
Elle Canada has been awarded additional contracts for the Metrolinx rail
network upgrade programme in Toronto.
· Named as a delivery partner for Network Rail's Southern region
10-year building and civils minor works framework.
· Housing sector recovering with orders 52% higher than H1 FY2024.
· Improved operational efficiency and right-sized cost base have
positioned the Group well to take full advantage of anticipated end market
recoveries.
· Net funds decreased to £3.1m (excl. IFRS 16 lease liabilities),
impacted by investment for growth in capital equipment and acquisitions, and
delayed receipts from HMRC in relation to the Group's R&D tax claim.
· Interim dividend declared of 0.4 pence per share, consistent year
on year.
Outlook
· Market conditions remain challenging in several sectors. Housing
is showing signs of recovery and, despite the slow start to Control Period 7,
our rail activities are increasing due to our diverse spread of customer
relationships and ongoing TransPennine Route upgrade works.
· Secured or preferred bidder positions on several key major
projects which are expected to commence in Q4.
· We expect several delayed projects in London and the South East
to proceed once the Building Safety Act approval delays are unblocked during
2025.
· Our strong position in energy and water is expected to yield
materially increased volumes from FY26 onwards as current design phases
develop towards project starts.
· Continuing to build upon the solid pipeline, with order book up
24% to £43.4m at 31 December 2024 (£35.1m at 30 April 2024), excluding
framework agreements and preferred bidder positions.
· Assuming continued strengthening of the Group's end markets, the
Board remains confident in achieving market expectations for the full year(1).
(1) Company compiled analyst consensus for FY2025 underlying profit before tax
is £6.0m.
Mark Cutler, Chief Executive, commented:
"The Group has faced another challenging period, however, it has continued to
make significant strategic progress, positioning Van Elle in attractive end
markets and strengthening its core offering to deliver for clients. We have
been focussed on driving operational efficiencies and have a right-sized cost
base, appropriate to the current levels of demand.
"The acquisition of Albion Drilling has accelerated our expansion into both
Scotland and the Energy sector and broadened our specialist capabilities,
while Specialist Piling activity levels notably increased in the Period. The
Group as a whole has continued to secure a solid pipeline of future work,
including several targeted key contract wins. Alongside the increase in
volumes experienced in our Housing Division, our other key markets are
expected to continue improving over the coming months, and coupled with a
strong order book, we remain confident in delivering a full year performance
in line with market expectations."
Analyst Briefing: 10.00am on Wednesday 29 January 2025
An online briefing for Analysts will be held at 10.00am today. Analysts
interested in attending should contact Walbrook PR on vanelle@walbrookpr.com
(mailto:vanelle@walbrookpr.com) or 020 7933 8780.
Investor Presentation: 3.30pm on Wednesday 29 January 2025
Mark Cutler, Chief Executive Officer, and Graeme Campbell, Chief Financial
Officer, will hold a presentation to review the results and outlook at 3.30pm
today. The presentation will be hosted through the digital platform Investor
Meet Company.
Investors can sign up to Investor Meet Company for free and add to meet Van
Elle Holdings plc via the following link
https://www.investormeetcompany.com/van-elle-holdings-plc/register-investor.
Investors who have already registered and added to meet the Company will
automatically be invited.
Questions can be submitted pre-event to vanelle@walbrookpr.com or in real
time during the presentation via the "Ask a Question" function.
For further information, please contact:
Van Elle Holdings plc Via Walbrook
Mark Cutler, Chief Executive Officer
Graeme Campbell, Chief Financial Officer
Peel Hunt LLP (Nominated Adviser and corporate broker) Tel: 020 7418 8900
Ed Allsopp
Charlotte Sutcliffe
Tom Graham
Walbrook PR Limited Tel: 020 7933 8780
or vanelle@walbrookpr.com
Tom Cooper 07971 221 972
Nick Rome 07748 325 236
About Van Elle Holdings plc:
Van Elle Holdings is the UK's largest specialist geotechnical engineering
contractor. Formed in 1984 and listed on AIM in 2016, the Company provides a
wide range of ground engineering techniques and services including ground
investigation, general and specialist piling, rail geotechnical engineering,
modular foundations, and ground improvement and stabilisation services.
Van Elle operates through three divisions: General Piling, Specialist Piling
and Rail, and Ground Engineering Services; and is focused on diverse end
markets including residential and housing, infrastructure and regional
construction - across which the Group has completed more than 20,000 projects
over the last 35 years.
Van Elle Holdings plc - Interim Report to 31 October 2024
Results overview
The Group's unaudited interim results reflect another resilient performance
despite the challenging market conditions across many of the Group's end
markets.
The housing market remained subdued in the Period, delivering lower activity
than the previous year which benefited from a temporary increase in brought
forward volumes as a result of new building regulations introduced towards the
end of Q1 FY2024. However, enquiry and order levels improved during the Period
and the Housing division is currently operating at significantly improved
activity levels.
The impact of the Building Safety Act has caused significant delays to the
commencement of numerous taller residential schemes, which has primarily
impacted revenues in Rock & Alluvium. Planning delays are expected to be
resolved during 2025 providing a stronger workload into FY2026.
Notwithstanding these challenges, the trading agreement with Galliford Try
under which the Group provides piling and geotechnical services has delivered
several important schemes.
In infrastructure, UK Rail revenues were impacted in the Period as the sector
transitioned from CP6 into CP7 but activity levels have increased during Q3
and benefits from our strong position on the TransPennine Route Upgrade
project. The Group's Canadian Rail subsidiary continues to deliver strong
revenue growth, including several contract/framework awards in recent months.
The Group has also made excellent progress in the water and energy sectors and
the acquisition of Albion Drilling Group in the Period provides additional
momentum in Scotland. The Group has also recently signed an eight-year
partnering agreement with Wood Transmission & Distribution Limited to
deliver ground investigation, design and construction activities for piling
and foundations across several energy transmission schemes as part of Ofgem's
Accelerated Strategic Transmission Investment (ASTI) programme.
Cost saving measures have been implemented to manage the Group's cost base
whilst the softer market conditions continue. Improved operational
efficiencies puts the Group in a stronger position to take advantage of the
anticipated market recovery.
The Group delivered revenue of £65.2m (H1 FY2024: £68.2m) and an underlying
profit before tax of £2.1m (H1 FY2024: £2.5m).
Net funds as at 31 October 2024 (excluding IFRS 16 property and vehicle lease
liabilities) decreased to £3.1m (30 April 2024: £5.5m) mainly reflecting
increased growth investment in the Period. Net capital expenditure was £2.2m,
primarily representing continued investment in the rig fleet. The Group paid
£1.3m in cash for the acquisition of Albion Drilling Group, and £0.9m for
the FY2024 final dividend in the Period. Working capital also increased by
£2.4m in the Period and includes the impact of approximately £1.3m of
delayed receipts from HMRC in relation to the Group's R&D tax claim.
The order book as at 31 December 2024 was £43.4m, a 24% increase since the
end of the previous financial year (30 April 2024: £35.1m), which benefits
from a contribution of £1.4m from the acquisition of Albion Drilling Group.
Market overview
The Group operates in the following three market sectors:
· Residential constituted 43% of Group revenues in the Period (43%
in H1 FY2024). Sector revenue decreased by 4% to £28.1m (H1 FY2024: £29.3m).
Divisional teams deliver integrated piling and foundation systems for national
and regional housebuilders, retirement homes and multi-storey residential
properties.
Demand for the Group's Smartfoot system was very strong in the first quarter
of the previous financial year, with new building regulations introduced
towards the end of Q1 FY2024, resulting in the acceleration of some
residential projects and providing a temporary increase to revenues. However,
since the second quarter of FY2024 affordability, driven by increased mortgage
rates and general market uncertainty, resulted in housebuilders commencing
fewer new build starts, particularly in the private housing market. A
proportion of this impact continues to be mitigated by the Group's balanced
exposure to affordable and partnership housing customers.
Notwithstanding the current challenging market conditions, the outlook for
housebuilding remains very strong in the UK, including the announcement from
the Labour government pledging 1.5 million new homes in the current parliament
and to speed up the planning process. The speed of delivery of the Smartfoot
system means that the division is well-positioned to respond quickly as the
market improves. The housing division is seeing early signs of the market
improvement, with orders strongly ahead of the previous year and a strong
pipeline of work has been secured for delivery during the remainder of the
financial year.
In the wider residential sector, the impact of the Building Safety Act has
caused significant delays to start dates of several taller residential
schemes, which has primarily impact revenues in Rock & Alluvium. Planning
delays are expected to be resolved during 2025 providing a stronger workload
into FY2026.
· Infrastructure constituted 40% of Group revenues in the Period (42% in
H1 FY2024). Sector revenue decreased by 9% to £26.2m (H1 FY2024: £28.7m).
The segment includes specialist ground engineering services to the rail,
highways, coastal and flooding, energy and utility sectors.
As anticipated, UK Rail revenues were subdued in the Period as the sector
transitions from CP6 into CP7, and revenue has been below expectations in the
early stages of CP7. Activity levels have been increasing post the half year
end, supported by work on the TransPennine Route Upgrade project.
The Group's Canadian Rail subsidiary continues to deliver strong revenue
growth, including several contract awards in recent months. Further progress
is expected once piling activities commence on the Metrolinx GO Expansion
programme which, despite delays, remains a significant opportunity for the
Group in Canada.
Government spending in the highways sector continues to be lower than
anticipated. The Group continues to focus on delivering work for Tier 1
contractors in this sector and has continued to deliver works on retrofit
emergency refuge areas under the Smart Motorways Programme Alliance (SMPA)
framework.
The Group has made further progress in developing a strong position in the
water and energy sectors and the recent acquisition of Albion Drilling Group
provides additional momentum in Scotland. As announced recently, the Group has
signed an eight-year partnering agreement with Wood Transmission &
Distribution Limited to deliver ground investigation, design and construction
activities for piling and foundations across several energy transmission
schemes as part of Ofgem's Accelerated Strategic Transmission Investment
(ASTI) programme, which is expected to generate revenues in excess of £30m.
· Regional Construction constituted 16% of Group revenues (14% in H1
FY2024). Sector revenue increased by 9% to £10.5m (H1 FY2024: £9.7m). The
Group delivers a full range of piling and ground improvement services to the
commercial and industrial sectors, from private and public sector building and
developer-led markets across the UK.
The increase in revenue compared to the previous year is broadly due to modest
levels of work delivered by Rock & Alluvium in this sector. The market
remains very competitive, with work-winning being extremely price sensitive.
The London market is expected to lead a recovery in developer confidence
although the new Building Safety Act has resulted in delays affecting taller
residential projects. The industrial markets covering factories, data centres
and warehousing also continue to offer significant opportunity for the Group's
range of piling and ground improvement services.
Operating structure
Van Elle's operational Group structure has remained consistent and is reported
in three segments:
· General Piling: open site; larger projects; key techniques being
large diameter rotary, CFA piling and precast driven piling.
· Specialist Piling and Rail: restricted access and low headroom
piling; extensive rail mounted capability; helical piling and steel modular
foundations (ScrewFast); sheet piling, soil nails and anchors, mini-piling and
ground stabilisation projects.
· Ground Engineering Services: driven and CFA piling for
housebuilders, precast concrete modular foundations (Smartfoot); ground
investigation and geotechnical services (Strata Geotechnics).
General Piling
Revenue decreased by 9% in the Period to £23.0m (H1 FY2024: £25.4m),
representing 35% of Group revenues.
Revenue from Rock & Alluvium, acquired by the Group on 30 November 2023,
are reported in the General Piling division. On a like-for-like basis,
excluding the impact of Rock & Alluvium, revenue decreased by 32%.
The General Piling division operates across all the Group's three market
segments and has been impacted by weak market conditions, particularly in the
residential and infrastructure sectors.
Residential sector revenues increased compared to the previous year, however,
the majority of contracts delivered by Rock & Alluvium relate to
residential contracts. On a like-for-like basis, General Piling's residential
revenues decreased by 42%. This decrease reflects the challenging market
conditions in new build and high-rise residential activity. The division has
also been impacted by the Building Safety Act, which has caused delays to
start dates of several taller residential schemes.
Infrastructure revenue decreased by 39%, primarily due to the previous year
benefiting from a large energy-from-waste contract, contributing approximately
£7m revenue in H1 FY2024.
The Regional Construction sector has been impacted by lower confidence in the
UK building market and as a result continued to be highly competitive with
minimal large-scale opportunities. Despite these factors, sector revenue was
broadly flat excluding the impact of Rock & Alluvium activity.
Operating profit was £0.5m for the Period (H1 FY2024: £1.8m).
Specialist Piling and Rail
Revenue increased by 14% in the Period to £23.2m (H1 FY2024: £20.3m),
representing 36% of Group revenues.
Specialist Piling activity levels increased by 22% compared to the previous
year, reflecting improving market conditions and stronger work-winning in the
Period compared to a softer comparative period which was impacted by delays to
major infrastructure work on highways and a decrease in drill and grout
activity. Contract margins remained strong due to the highly skilled nature of
site works.
UK Rail revenues decreased by 27% compared to the previous year with subdued
workload as the sector transitions from CP6 into CP7. The second half of the
financial year is showing improvement in performance, supported by increasing
activity levels on the TransPennine Route Upgrade project.
Growth continued in Canada with the subsidiary delivering revenue of £1.8m in
the Period, despite delays to the ONxpress delivery programme. Progress is
expected to continue as we become embedded in the local market supply chain,
including the award of a three-year framework agreement in November for the
delivery of Metrolinx renewals projects worth approximately CAD$9m to the
Group.
The medium-term outlook for the division's work in the infrastructure sector
remains very positive, with significant growth opportunities in the
high-voltage power sector supporting the development of the UK's electricity
transmission networks, and increased activity in the water and rail sectors.
Operating profit for the division increased to £2.0m (H1 FY2024: £0.5m).
Ground Engineering Services
Revenue decreased by 15% in the Period to £18.7m (H1 FY2024: £22.1m),
representing 29% of Group revenues. Ground Engineering consists of the Housing
division and Strata Geotechnics ('Strata'). The Housing division delivers
integrated piling and Smartfoot foundation beam solutions to UK housebuilders.
Strata delivers ground investigation, testing and monitoring services.
Housing division revenues decreased by 16% compared to the previous year.
Whilst the previous financial year was generally impacted by lower new build
housing starts, the first quarter of FY2024 delivered very strong revenues,
before a rapid decline in activity levels from the second quarter. There are
positive signs of a market recovery, including materially improved order
levels in the Period, which are being delivered in the second half of the
financial year.
Our diverse customer base, with additional exposure to partnership and
affordable housing customers, where volumes were affected to a lesser extent,
has partially mitigated the impact of the very soft private housebuilding
market.
Strata revenues decreased by 11% to £3.6m (H1 FY2024: £4.1m), impacted by
lower workload in the infrastructure sector. Good progress has been made in
work-winning in the second half of the financial year and activity levels are
expected to increase significantly in Q4 FY2025 as energy sector in Scotland
commences.
Operating profit for the segment decreased to £0.3m (H1 FY2024: £1.8m)
reflecting lower overhead recovery in Housing and the impact of lower margin
achieved on a challenging contract in Strata.
Strategy
Progress towards the Group's strategic financial objectives has been impacted
by ongoing challenging market conditions in many of its end markets. However,
the Group continues to deliver a resilient performance and is well-positioned
for the expected improvement in market conditions, particularly in residential
housing and infrastructure markets. The Board remains confident in delivering
6-7% operating profit and 15-20% ROCE by FY2027 driven through organic revenue
growth supplemented by strategic bolt-on acquisitions.
Sustainability and ESG
The Group's sustainability strategy is aligned with the UN Sustainable
Development Goals, which we consider to be the most applicable to our business
operations. We have signed up to the Science Based Targets initiative (SBTi)
to set achievable emissions reduction targets against a representative base
year to achieve Net Zero by 2050.
A medium-term sustainability roadmap is established, which provides a clear
pathway to a 30% reduction in our greenhouse gas emissions from a 2020
baseline. Our Sustainability working group, which has executive level
leadership, is using this roadmap to track progress against our targets and
objectives. The Group measures and reports Scope 1 and Scope 2 emissions.
Current year sustainability targets include:
- Full validation of our targets with SBTi.
- Become accredited sustainable procurement, ISO 20400.
- Develop processes to measure and report Scope 3 emissions.
- Review and implement solar panels where appropriate.
- Trial low carbon concrete and steel.
- Embed carbon footprint estimations for all projects at the design
stage.
Dividend
The Board acknowledges that dividends continue to represent an important
constituent of total shareholder returns and accordingly has declared an
interim dividend of 0.4 pence per share.
The interim dividend will be payable on 14 March 2025 to shareholders on the
share register as at 21 February 2025. The shares will be marked ex-dividend
on 20 February 2025.
Current trading and outlook
Market conditions in each of our end markets are expected to remain
challenging for the remainder of the current financial year.
However, the Group has continued to secure a solid pipeline of future work,
including several targeted key contract wins, and has a strong order book for
delivery in the final quarter of the financial year. Whilst H1 revenues were
below prior year levels, the Group has taken steps to reduce its cost base and
is well-positioned to take advantage of the anticipated market recovery.
New build housing is showing continued signs of improvement and there is a
significant opportunity to drive improved performance from the high level of
committed UK spend in the energy, water and rail sectors where the Group has
developed strong positions with customers including its partnership with
Galliford Try. The Canadian rail subsidiary is still in the early stages of
establishment but has built an increasing pipeline of work and is expected to
see further growth once piling activity commences on the Metrolinx GO
Expansion programme in Toronto. The Group is also seeing an increased demand
for its capabilities in the industrial sector including its largest contract
award for two years, due to be announced in February, and in the defence and
security sector where we have developed customer partnerships on the new
prisons programme. Once the backlog of approvals from the Building Safety Act
are released, we also anticipate a strong recovery in activity levels in
London and the South East.
The Board continues to expect results in line with market expectations for the
current financial.
Mark Cutler
Chief Executive Officer
29 January 2025
Condensed consolidated statement of comprehensive income
6 months to 31 Oct 2024 (unaudited) 6 months to 31 Oct 2023 (unaudited) 12 months to 30 Apr 2024 (audited)
£'000 £'000 £'000
Note
Revenue 2,3 65,163 68,210 139,479
Cost of sales (45,003) (47,544) (97,545)
Gross profit 20,160 20,666 41,934
Administrative expenses (19,632) (18,769) (39,545)
Credit loss impairment charge (68) (93) 157
Other operating income 1,455 859 3,259
Operating profit 1,915 2,663 5,805
Operating profit before non-underlying items 2,055 2,663 5,472
Non-underlying items (140) - 333
Operating profit 1,915 2,663 5,805
Finance expense (147) (177) (429)
Finance income 100 3 251
Profit before tax 1,868 2,489 5,627
Income tax expense (508) (814) (1,413)
Profit after tax 1,360 1,675 4,214
Earnings per share (pence)
Basic 6 1.3 1.6 3.9
Diluted 6 1.3 1.6 3.9
Other comprehensive income 6 months to 31 Oct 2024 (unaudited) 6 months to 31 Oct 2023 (unaudited) 12 months to 30 Apr 2024 (audited)
£'000 £'000 £'000
Note
Items that may or may not be reclassified subsequently to profit or loss:
Foreign operations - foreign currency translation differences (62) - (39)
Other comprehensive income for the period, net of tax (62) - (39)
Total comprehensive income for the period attributable to shareholders of the 1,298 1,675 4,175
parent
All amounts relate to continuing operations.
Condensed consolidated statement of financial position
As at As at As at
31 Oct 2024 (unaudited) 31 Oct 2023 (unaudited) 30 Apr 2024 (audited)
£'000 £'000 £'000
Non-current assets
Property, plant and equipment 46,290 41,821 44,020
Intangible assets 4,981 3,638 4,432
Deferred tax 370 - 389
51,641 45,459 48,841
Current assets
Inventories 6,192 4,929 5,753
Trade and other receivables 33,411 29,909 38,268
Cash and cash equivalents 3,814 9,047 6,002
43,417 43,885 50,023
Total assets 95,058 89,344 98,864
Current liabilities
Trade and other payables 21,782 18,178 22,569
Deferred consideration 2,671 - 2,120
Lease liabilities 3,833 2,476 2,040
Provisions 1,903 8,238 8,064
30,189 28,892 34,793
Non-current liabilities
Deferred consideration 281 - -
Lease liabilities 4,309 4,654 5,606
Deferred tax 6,426 4,801 5,731
11,016 9,455 11,338
Total liabilities 41,205 38,347 46,130
Net assets 53,853 50,997 52,734
Equity
Share capital 2,164 2,133 2,135
Share premium 9,189 8,633 8,633
Other reserve 5,807 5,807 5,807
Retained earnings 36,693 34,424 36,159
Total equity 53,853 50,997 52,734
Condensed consolidated statement of cash flows
6 months to 31 Oct 2024 (unaudited) 6 months to 12 months to 30 Apr 2024 (audited)
£'000 31 Oct 2023 (unaudited) £'000
£'000
Cash flows from operating activities
Operating profit 1,914 2,663 5,805
Depreciation of property, plant and equipment 4,099 3,498 7,506
Amortisation of intangible assets 74 74 149
Profit on disposal of property, plant and equipment (377) (108) (404)
Share-based payment expense 123 134 230
Operating cash flows before movement in working capital 5,833 6,261 13,286
(Increase)/decrease in inventories (148) 42 (743)
(Increase)/decrease in trade and other receivables (830) 5,635 (1,317)
Decrease in trade and other payables (1,234) (5,067) (2,439)
Increase/(decrease) in provisions (211) 95 (79)
Cash generated from operations 3,410 6,966 8,708
Income tax (paid)/received - (302) -
Net cash generated from operating activities 3,410 6,664 8,708
Cash flows from investing activities
Purchases of property, plant and equipment (2,770) (3,914) (5,500)
Disposal of property, plant and equipment 576 1,369 1,877
Purchase of subsidiary, net of cash acquired (1,297) (740) (2,540)
Purchase of own shares into EBT - - (420)
Net cash absorbed in investing activities (3,491) (3,285) (6,583)
Cash flows from financing activities
Proceeds from issue of shares - - 2
Repayment of bank borrowings - (1,158) (1,158)
Principal paid on lease liabilities (1,207) (1,031) (2,394)
Interest paid on lease liabilities (147) (76) (335)
Interest paid on loans and borrowings - (102) (93)
Interest received 100 3 250
Dividends paid (853) (853) (1,280)
Net cash absorbed in financing activities (2,107) (3,217) (5,008)
Net increase/(decrease) in cash and cash equivalents (2,188) 162 (2,883)
Cash and cash equivalents at beginning of period 6,002 8,885 8,885
Cash and cash equivalents at end of period 3,814 9,047 6,002
Condensed consolidated statement of changes in equity
Share Share Other Total
Capital premium reserve Retained equity
£'000 £'000 £'000 earnings £'000
£'000
Balance at 1 May 2023 2,133 8,633 5,807 33,458 50,031
(audited)
Total comprehensive income - - - 1,675 1,675
Share-based payment expense - - - 134 134
Dividends paid - - - (853) (853)
Deferred tax credit on share-based payments - - - 10 10
Balance at 31 October 2023 2,133 8,633 5,807 34,424 50,997
(unaudited)
Total comprehensive income - - - 2,500 2,500
Issue of share capital 2 - - - 2
Purchase of own shares into EBT - - - (420) (420)
Share-based payment expense - - - 92 92
Dividends paid - - - (427) (427)
Deferred tax charge on share-based payments - - - (10) (10)
Balance at 30 April 2024 2,135 8,633 5,807 36,159 52,734
(audited)
Total comprehensive income - - - 1,298 1,298
Issue of share capital 29 556 - - 585
Share-based payment expense - - - 123 123
Dividends paid - - - (853) (853)
Deferred tax charge on share-based payments - - - (34) (34)
Balance at 31 October 2024 2,164 9,189 5,807 36,693 53,853
(unaudited)
Notes to the condensed consolidated interim financial statements
For the six months ended 31 October 2024
1. Basis of preparation
The unaudited interim consolidated statement of Van Elle Holdings plc is for
the six months ended 31 October 2024 and does not comprise statutory accounts
within the meaning of section 435 of the Companies Act 2006. These condensed
consolidated financial statements have been prepared in compliance with the
recognition and measurement requirement of International Accounting Standards
in conformity with the requirements of the Companies Act 2006. They do not
include all disclosures that would otherwise be required in a complete set of
financial statements and should be read in conjunction with the Group's annual
report. The unaudited interim consolidated statement has been prepared in
accordance with the accounting policies that are expected to be applied in the
report and accounts for the year ending 30 April 2025.
The comparative figures for the year ended 30 April 2024 do not constitute
statutory accounts within the meaning of section 435 of the Companies Act
2006, but they have been derived from the audited financial statements for
that year, which have been filed with the Registrar of Companies. The report
of the auditors was unqualified and did not contain statements under section
498 (2) or (3) of the Companies Act 2006 nor a reference to any matters which
the auditor drew attention by way of emphasis of matter without qualifying
their report.
Going Concern
As part of the going concern assessment for the year ended 30 April 2024
detailed forecasts were prepared. These forecasts demonstrated sufficient cash
flow and headroom across the period to 31 December 2025. Reverse stress
testing was also carried out and the scenarios in which cash resources were
exhausted and further debt facilities were required were considered remote.
Market conditions have been challenging throughout the 6-month period however
the Group has continued to invest, resulting in a reduction in net funds
(excluding IFRS 16 property and vehicle lease liabilities) of £2.4m in the
Period, to £3.1m as at 31 October 2024. The Group's £11m asset backed
lending facility was undrawn at the end of the period. Total hire purchase
finance at the end of the period was £0.7m, £0.4m of which was assumed on
the acquisition of Albion Drilling Holdings Limited on 29 October 2024.
As part of the interim going concern assessment, forecasts for the 12 months
ending January 2026 have been prepared which demonstrate that the Group is
able to operate within its existing facilities and meet obligations as they
fall due. The Board remains confident in achieving market expectations for the
current financial year. The Group's order book has also grown in the period
since 30 April 2024.
On this basis the Board consider the Group to have adequate resources to
continue its operations for the foreseeable future. Accordingly, the Board
continue to adopt the going concern basis in preparing the interim financial
statements.
Accounting Policies
The accounting policies adopted in the preparation of the unaudited Group
interim consolidated statement to 31 October 2024 are consistent with the
policies applied by the Group in its consolidated financial statements as at,
and for the year ended 30 April 2024.
Functional currency
The unaudited interim consolidated statements are presented in Sterling, which
is also the Group's functional currency. Amounts are rounded to the nearest
thousand, unless otherwise stated.
2. Segment information
The Group evaluates segmental performance based on profit or loss from
operations calculated in accordance with IFRS. Inter-segment sales are priced
along the same lines as sales to external customers, with an appropriate
discount being applied to encourage use of Group resources at a rate
acceptable to local tax authorities. Head office central services costs
including insurances are allocated to the segments based on levels of
turnover.
Operating segments - 6 months to 31 October 2024
General Specialist Ground Head Total
Piling Piling & Rail Engineering Office £'000
£'000 £'000 Services £'000
£'000
Revenue 23,031 23,226 18,714 192 65,163
Other operating income - - - 1,455 1,455
Underlying operating profit 479 1,953 309 (686) 2,055
Operating profit 479 1,953 309 (826) (1,915)
Finance expense - - - (147) (147)
Finance income - - - 100 100
Profit before tax 479 1,953 309 (873) 1,868
Assets
Property, plant and equipment (including right of use assets) 12,697 16,204 6,520 10,870 46,290
Intangible assets 868 3,924 188 - 4,981
Inventories 2,293 1,104 2,734 61 6,192
Reportable segment assets 15,858 21,232 9,442 10,931 57,463
Deferred tax - - - 370 370
Trade and other receivables - - - 33,661 33,661
Cash and cash equivalents - - - 3,814 3,814
Total assets 15,858 21,232 9,442 48,776 95,308
Liabilities
Trade and other payables - - - 21,782 21,782
Provisions - - - 1,903 1,903
Deferred consideration - - - 2,952 2,952
Lease liabilities - - - 8,142 8,142
Deferred tax - - - 6,426 6,426
Total liabilities - - - 41,205 41,205
Other information
Capital expenditure 1,313 1,110 118 229 2,770
Depreciation 1,294 1,483 839 557 4,173
The Group had no customers with revenues greater that 10% in the current
period (2023: one). Total revenues from the customer in 2023 were £7.4m and
these are reported within the General Piling operating segment.
Geographical segments - 6 months to 31 October 2024
Revenue and operating profit from external customers, and the carrying amount
of non-current assets by geographical segment are shown below:
UK Other countries Total
£'000 £'000 £'000
Revenue 63,359 1,804 65,163
Operating profit/(loss) 2,012 (97) 1,915
Non-current assets 49,629 2,012 51,641
Operating segments - 6 months to 31 October 2023
General Specialist Ground Head Total
Piling Piling & Rail Engineering Office £'000
£'000 £'000 Services £'000
£'000
Revenue 25,372 20,333 22,058 447 68,210
Other operating income - - - 859 859
Operating profit 1,816 486 1,761 (1,400) 2,663
Finance expense - - - (177) (177)
Finance income - - - 3 3
Profit before tax 1,816 486 1,761 (1,574) 2,489
Assets
Property, plant and equipment (including right of use assets) 8,937 13,777 7,548 11,559 41,821
Intangible assets 7 3,422 209 - 3,638
Inventories 1,898 759 2,233 39 4,929
Reportable segment assets 10,842 17,958 9,990 11,598 50,388
Trade and other receivables - - - 29,909 29,909
Cash and cash equivalents - - - 9,047 9,047
Total assets 10,842 17,958 9,990 50,554 89,344
Liabilities
Trade and other payables - - - 18,178 18,178
Provisions - - - 8,238 8,238
Lease liabilities - - - 7,130 7,130
Deferred tax - - - 4,801 4,801
Total liabilities - - - 38,347 38,347
Other information
Capital expenditure 855 590 184 2,285 3,914
Depreciation 816 1,331 816 535 3,498
Geographical segments - 6 months to 31 October 2023
Revenue and operating profit from external customers, and the carrying amount
of non-current assets by geographical segment are shown below:
UK Other countries Total
£'000 £'000 £'000
Revenue 68,180 30 68,210
Operating profit/(loss) 3,304 (641) 2,663
Non-current assets 44,287 1,172 45,459
Operating segments - 12 months to 30 April 2024
General Specialist Ground Head Total
Piling Piling Engineering Office £'000
£'000 & Rail Services £'000
£'000 £'000
Revenue 56,686 43,871 38,317 605 139,479
Other operating income - - - 3,259 3,259
Underlying operating profit 5,212 1,198 918 (1,856) 5,472
Operating profit 5,212 1,198 918 (1,523) 5,805
Finance expense - - - (429) (429)
Finance income - - - 251 251
Profit before tax 5,212 1,198 918 (1,701) 5,627
Assets
Property, plant and equipment (including right of use assets) 12,444 13,388 7,049 11,139 44,020
Intangible assets 871 3,362 199 - 4,432
Inventories 2,304 864 2,539 46 5,753
Reportable segment assets 15,619 17,614 9,787 11,185 54,205
Deferred Tax - - - 389 389
Trade and other receivables - - - 38,268 38,268
Cash and cash equivalents - - - 6,002 6,002
Total assets 15,619 17,614 9,787 55,844 98,984
Liabilities
Trade and other payables - - - 22,569 22,569
Provisions - - - 7,646 7,646
Deferred consideration - - - 8,064 8,064
Lease liabilities - - - 2,120 2,120
Deferred tax - - - 5,741 5,741
Total liabilities - - - 46,130 46,130
Other information
Capital expenditure 1,144 1,764 704 2,844 6,456
Depreciation 2,063 2,828 1,640 1,123 7,654
Geographical segments - 12 months to 30 April 2024
Revenue and operating profit from external customers, and the carrying amount
of non-current assets by geographical segment are shown below:
UK Other countries Total
£'000 £'000 £'000
Revenue 139,077 402 139,479
Operating profit 7,195 (1,390) 5,805
Non-current assets 46,991 1,461 48,452
3. Revenue from contracts with customers
Disaggregation of revenue - 6 months to 31 October 2024
End market General Specialist Ground Head Total
Piling Piling & Rail Engineering Office £'000
£'000 £'000 Services £'000
£'000
Residential 9,973 3,528 14,595 - 28,096
Infrastructure 6,171 17,286 2,759 - 26,216
Regional construction 6,783 2,409 1,349 - 10,541
Other 104 4 10 192 310
Total 23,031 23,227 18,713 192 65,163
Disaggregation of revenue - 6 months to 31 October 2023
End market General Specialist Ground Head Total
Piling Piling & Rail Engineering Office £'000
£'000 £'000 Services £'000
£'000
Residential 9,304 2,289 17,744 - 29,337
Infrastructure 10,076 15,486 3,126 - 28,688
Regional construction 5,907 2,558 1,185 - 9,650
Other 85 - 3 447 535
Total 25,372 20,333 22,058 447 68,210
Disaggregation of revenue - 12 months to 30 April 2024
End market General Specialist Ground Head Total
Piling Piling & Rail Engineering Office £'000
£'000 £'000 Services £'000
£'000
Residential 22,937 4,921 29,339 - 57,197
Infrastructure 15,737 33,153 6,332 - 55,222
Regional construction 17,761 5,797 2,644 - 26,202
Other 251 - 2 605 858
Total 56,686 43,871 38,317 605 139,479
Contract assets
6 months to 6 months to 12 months to
31 Oct 2024 31 Oct 2023 30 Apr 2024
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
As at 1 May 4,937 4,913 4,913
Transfers from contract assets to trade receivables (4,937) (4,913) (4,913)
Excess of revenue recognised over invoiced 6,350 3,296 4,937
Impairment of contract assets - - -
As at 31 October / 30 April 6,350 3,296 4,937
Contract liabilities
6 months to 6 months to 12 months to 30 Apr 2024 (audited)
31 Oct 2024 (unaudited) 31 Oct 2023 (unaudited) £'000
£'000 £'000
As at 1 May 384 1,987 1,987
Interest on contract liabilities - - -
Contract liabilities recognised as revenue in the period (384) (1,987) (1,987)
Deposits received in advance of performance 22 734 384
As at 31 October / 30 April 22 734 384
4. Other operating income
6 months to 6 months to 12 months to 30 Apr 2024 (audited)
31 Oct 2024 (unaudited) 31 Oct 2023 (unaudited) £'000
£'000 £'000
Research and development expenditure credit relating to prior period 438 609 1,646
Research and development expenditure credit relating to current period 1,017 250 1,613
1,455 859 3,259
The research and development expenditure credit relating to the prior period
relates to an increase in the estimate of the claim value for the previous
financial year ended 30 April 2024. The research and development expenditure
credit relating to the current period is based on the management estimate of
the claim relating to the year ended 30 April 2025.
5. Non-underlying items
6 months to 6 months to 12 months to 30 Apr 2024 (audited)
31 Oct 2024 (unaudited) 31 Oct 2023 (unaudited) £'000
£'000 £'000
Research and development expenditure credit relating to prior period - - (894)
Business combination costs 86 - 228
Legal costs - - 250
Restructuring costs 54 - 83
Finance income - - (149)
140 - (482)
Business combination costs relate to acquisition fees for the purchase of
Albion Drilling Holdings Limited on 29 October 2024. Restructure costs relate
to the restructure of the leadership team and several functions which
commenced towards the end of the previous financial year.
Non-underlying items in the financial year ended 30 April 2024 related to;
research and development expenditure credits relating to the 30 April 2022
financial year and part of the expenditure credit relating to the 30 April
2023 financial year as they represented significant increases in previous
claim values which were considered one-off in nature. Business combination
costs related to acquisition fees for the purchase of Rock & Alluvium
Limited on 30 November 2023. Legal costs represented a health and safety
penalty following the death of a third-party haulier following the failure of
a Van Elle piling rig in Scotland in April 2021. Towards the end of FY2024,
a restructure of the leadership team and several functions commenced.
Restructure costs represented the initial costs incurred in this project.
Finance income related to interest income received as a result of early
payment of settlement funds by an insurer.
6. Earnings per share
The calculation of basic and diluted earnings per share is based on the
following data:
6 months to 6 months to 12 months to 30 Apr 2024 (audited)
31 Oct 2024 (unaudited) 31 Oct 2023 (unaudited)
Basic weighted average number of shares 106,741 106,667 106,703
Dilutive weighted average shares from share options 1,138 210 1,209
Diluted weighted average number of shares 107,879 106,877 107,912
£'000 £'000 £'000
Profit for the period 1,360 1,675 4,214
Non-underlying items 140 - (482)
Tax effect of non-underlying items 14 - (20)
Underlying profit for the period 1,514 1,675 3,712
Pence Pence Pence
Earnings per share
Basic 1.3 1.6 3.9
Diluted 1.3 1.6 3.9
Basic - underlying 1.4 1.6 3.5
Diluted - underlying 1.4 1.6 3.4
The calculation of the basic earnings per share is based on the earnings
attributable to ordinary shareholders and on 106,740,933 ordinary shares being
the weighted average number of ordinary shares in issue during the period.
The dilutive shares represent share options exercisable under Group's LTIP
scheme that vested on 30 September 2023 and which have not been exercised at
31 October 2024.
7. Dividends paid
6 months to 6 months to 12 months to
31 Oct 2024 31 Oct 2023 30 Apr 2024
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Amounts recognised as distributions to equity holders during the Period:
Final dividend for the year ended 30 April 2023 of 0.8p per share - 853 853
Interim dividend for the year ended 30 April 2024 of 0.4p per share - - 427
Final dividend for the year ended 30 April 2024 of 0.8p per share 853 - -
Total 853 853 1,280
8. Analysis of cash and cash equivalents and reconciliation to net (debt)
/ funds
As at As at As at
31 Oct 2024 (unaudited) 31 Oct 2023 (unaudited) 30 Apr 2024
£'000 £'000 (audited)
£'000
Cash at bank 3,810 9,039 5,964
Cash in hand 4 8 38
Cash and cash equivalents 3,814 9,047 6,002
Loans and borrowings - - -
Lease liabilities (8,142) (7,130) (7,646)
Net (debt) / funds (4,328) 1,917 (1,644)
Net funds excl. IFRS 16 property and vehicle lease liabilities 3,068 8,926 5,472
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