REG - Van Elle HoldingsPLC - Trading Update & Notice of Results

Van Elle HoldingsAnnouncement

19/11/2021 07:00

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RNS Number : 8993S  Van Elle Holdings PLC  19 November 2021

 

Van Elle Holdings plc

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

 

Trading Update

& Notice of Results

 

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 2021 (the 'Period') ahead of announcing its half-year results, which
are expected to be released on Monday 31 January 2022.

 

Strong activity levels have continued in most divisions, leading to
significantly increased revenues of approximately £60m in the Period. This
represents a 56% increase over the prior year comparative period (HY21:
£38.3m) as well as a return to growth over pre-Covid comparative revenues,
with run rates exiting the Period showing good capacity usage across all
divisions. As expected, recovery in Rail volumes continued to lag the other
segments, with residential construction showing the highest activity levels.
Encouragingly, the Rail business has seen an improvement in enquiries and
contract activity towards the end of the Period, which is expected to continue
in the second half.

 

The Group has continued to experience the effects of industry-wide supply
chain challenges, salary inflation and short-term employee availability. These
challenges continue to be mitigated at an operational level. Management is
focused on improving its margin mix and remains confident that the strong
market recovery and divisional performance will underpin an improved outlook.

 

Good progress continues to be made in the delivery of strategic actions
including work winning activity in the infrastructure and housing sectors
which underpin the medium-term financial targets outlined in previous updates.

 

Cash as at 31 October 2021 was £6.3m (30 April 2021: £8.5m). The decrease in
cash reflects an increase in working capital due to higher activity levels and
rig purchases which have been financed from cash reserves. The Group has also
further reduced its hire purchase debt during the Period.

 

The Group's order book at 31 October 2021 was £34.5m (9 August 2021:
£34.7m).

 

The Board is pleased with the progress delivered in the first half of the year
and continues to be confident that FY22 full year performance will be in line
with market expectations.

 

Notice of Results:

Van Elle expects to announce its half-year results on Monday 31 January
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.

 

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

 Mike Bell / Ed Allsopp

 Walbrook PR Limited                                     Tel: 020 7933 8780

                                                         or vanelle@walbrookpr.com

 Tom Cooper / Nick Rome / Nicholas Johnson               07971 221 972 or 07748 325 236 or 07884 664 686

 

 

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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