REG - Van Elle HoldingsPLC - Trading Update, Notice of Results & Investor Pres

Van Elle HoldingsAnnouncement

17/05/2022 07:00

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RNS Number : 6817L  Van Elle Holdings PLC  17 May 2022

 

Van Elle Holdings plc

('Van Elle', the 'Company' or the 'Group')

 

Trading Update

Notice of Results

Analyst Briefing & Investor Presentation

 

Van Elle Holdings plc (AIM: VANL), the UK's largest ground engineering
contractor, today provides a trading update for the year ended 30 April 2022
(the 'Period') ahead of announcing its full-year results, which are expected
to be released on Wednesday 3 August 2022.

 

The Board is pleased to report the elevated levels of demand in Van Elle's
core markets detailed in the Interim Results in January continued through the
second half of the year. Consequently, the Group now expects to report results
for the Period ahead of the recently upgraded forecasts, with revenues of
approximately £125m. This represents an increase of approximately 48% (a 41%
increase after adjusting for the impact of the acquisition of ScrewFast
Foundations Limited) compared with the prior year (FY2021: £84.4m), with
operating profits slightly ahead of the top end of the range of market
expectations.

 

This continued demand is reflective across the Group's divisions. As
anticipated, there has been an increase in work delivered within the Rail
division, and volumes across Housing, Specialist Piling and General Piling
have remained consistent. Supply chain challenges are showing some signs of
moderating, with the impact of material price inflation being managed through
contract pricing mechanisms.

 

The Group can report continued momentum on its bidding programme aligned to
its target growth markets, including the signing of the 10-year Smart
Motorways Programme Alliance (SMPA) framework and a new contract award in the
energy sector within General Piling, which represents its largest single award
since the outset of the pandemic, at approximately £8.0m, for which work is
expected to commence in May 2022.

 

Cash generation in the second half was strong, with cash at the Period end of
£7.0m (31 October 2021: £6.3m), and net funds (excl. IFRS 16 lease
liabilities) increasing to £5.9m (31 October 2021: £3.5m).

 

The Group's order book at 30 April 2022 was £39.0m (£39.1m at 31 December
2021), which excludes the SMPA framework and recent contract award noted
above.

 

The Board is pleased with progress made in the second half of FY22. The
trading momentum has continued into FY23 while future prospects in its growth
markets remain encouraging. The Board is therefore increasingly confident of
achieving its mid-term financial targets of 7-8% operating profit and 15-20%
ROCE.

 

Notice of Results:

Van Elle expects to announce its full-year results on Wednesday 3 August
2022.

 

Analyst Briefing: 9.30am, Wednesday 3 August 2022

A briefing for Analysts will be held at 9.30am on the morning of the
results.  Analysts interested in attending should contact Walbrook PR
on vanelle@walbrookpr.com or 020 7933 8780.

 

Investor Presentation: 3.30pm, Wednesday 3 August 2022

Mark Cutler, Chief Executive Officer, and Graeme Campbell, Chief Financial
Officer, will hold a presentation to review the results and outlook at 3.30pm
on 3 August 2022. 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 / Mike Bell

 Walbrook PR Limited                                     Tel: 020 7933 8780

                                                         or vanelle@walbrookpr.com

 Tom Cooper / Nick Rome                                  07971 221 972 or

                                                         07748 325 236

 

 

About Van Elle Holdings plc:

Van Elle Holdings is the UK's largest specialist geotechnical engineering
contractor. The Company provides a 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 ground engineering; and is focused on three end markets: residential and
housing, infrastructure and regional construction - across which the Group has
completed more than 20,000 projects over the last 35 years.

General piling provides a range of larger piling and ground engineering
solutions for open-site construction projects. Specialist piling provides a
range of geotechnical solutions in operationally constrained environments
including on-track rail applications. Ground engineering services offers a
range of ground investigation and geotechnical services and modular foundation
solutions such as Smartfoot®. Van Elle has a market-leading reputation and
the UK's largest rig fleet of 115 rigs.

Having floated on AIM in 2016 it now has a strong national presence,
diversified offering and market-leading brand name.

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