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

Van Elle HoldingsAnnouncement

01/12/2023 07:00

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RNS Number : 3077V  Van Elle Holdings PLC  01 December 2023

 

Van Elle Holdings plc

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

 

First Half 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 six months ended 31
October 2023 (the 'Period'), and an update on the acquisition of Rock and
Alluvium Ltd ('Rock and Alluvium' or the 'Acquisition').

 

Trading update

The Group's results for the Period are in line with the Board's expectations.
This reflects a resilient operational performance despite challenging market
conditions, continuing inflationary pressures and delayed project starts.

 

The Group expects to report revenues for the Period of approximately £68m,
representing a decrease of 16% on the prior year (HY2023: £80.8m), but
expects to report operating profit margins consistent with the prior year
(FY2023: 3.9%).

 

The Group's balance sheet remains strong, with a net funds position (excluding
IFRS16 lease liabilities) of £8.9m at Period end (30 April 2023: £7.5m) and
flexibility afforded by the Group's undrawn funding facility of up to £11m.

 

There continues to be uncertainty and subdued activity levels in some of the
Group's end markets, particularly the housebuilding sector, which is expected
to continue into the second half of the financial year.

 

However, further progress has been made on several substantial growth
opportunities in the energy sector. The costs of establishing the Group's new
Canadian rail subsidiary have been absorbed in the Period and initial projects
commenced in the second quarter.

 

The order book at 31 October 2023 increased to £32.7m (30 April 2023:
£30.8m), which excludes framework agreements and preferred bidder positions,
providing a strong platform entering the second half.

 

The Board continues to expect results in line with market expectations(1) for
the current financial year and is confident in the Group's outlook over the
medium term across all of its core markets.

 

Acquisition update

On 26 October 2023, the Group announced that agreement had been reached with
Galliford Try Holdings plc to acquire Rock and Alluvium Ltd and enter into a
five-year trading agreement. The Acquisition completed on 30 November 2023.
There are early signs of a recovery in commercial and residential
opportunities in London and the south east which Rock and Alluvium, as part of
the Van Elle Group, is well placed to benefit from. Accordingly, the Board
expects the Acquisition to be accretive to underlying earnings in the first
full year of ownership.

 

Notice of results

The Company expects to announce its half-year results for the six months ended
31 October 2023 on Wednesday, 24 January 2024.

 

Analyst Briefing: 9.30am, Wednesday 24 January 2024

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 24 January 2024

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 24 January 2024. 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
(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 (mailto:vanelle@walbrookpr.com) , or in real time
during the presentation via the "Ask a Question" function.

 

 

(1) Company compiled analyst consensus for FY2024 underlying profit before tax
is £5.0m.

 

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 / Ben Harrington

 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. 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.

 

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