REG - Van Elle HoldingsPLC - Trading Update

Van Elle HoldingsAnnouncement

14/04/2023 07:00

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RNS Number : 1795W  Van Elle Holdings PLC  14 April 2023

 

Van Elle Holdings plc

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

 

Pre-close trading update

 

 

Van Elle Holdings plc, the UK's largest ground engineering contractor,
provides an update on trading and strategic opportunities ahead of its
financial year ending 30 April 2023 ("FY23").

 

Full year 2023 expectations in line

Group revenues are approximately 20 per cent ahead of the previous year,
however the Group's trading performance since the interim results announcement
in January has been subject to the impact of industry-wide softening and
investment delays due to macro-economic factors in the housing and
infrastructure markets respectively.  Despite these challenges, the Group
remains on track to deliver profit before tax for FY23 in line with previously
upgraded expectations*.

 

Industry forecasts expect weaker market conditions to continue into the new
financial year, particularly in the new-build housing sector.  As a result,
the Group is undertaking a range of cost saving measures to support margins
and has made strategic progress on new growth opportunities, as noted below.

 

* Company compiled analyst consensus for FY2023 underlying profit before tax
is £5.3m with a range of £5.2m - £5.4m.

 

Launch of Smartdeck foundation system

Despite a slowdown in new-build housing starts since autumn 2022, the medium
and longer-term opportunities in the housing sector remain compelling, as the
Government drives its agenda to deliver 300,000 net additional dwellings per
annum.

 

To expand its range of efficient foundation systems, the Group has launched
Smartdeck, an innovative piled raft foundation solution which integrates
piling and foundations to floor slab level. The system complements the
Company's established Smartfoot precast foundation beam system.  Discussions
are ongoing with key customers and the Company expects to deploy Smartdeck on
projects commencing in H1 FY24.

 

Smart Motorways retrofit safety works commenced

In January 2022, the Government paused new "all-lane-running" Smart Motorway
projects until sufficient safety data is available for review.  However, the
10-year National Highways Smart Motorway Programme Alliance is progressing
important additional safety measures on the existing network including new
emergency areas.  As a national framework partner to the Alliance, Van Elle
expects to participate in the delivery of these programmes from H1 FY24.

 

Incorporation of Van Elle Canada Inc

The Company has previously noted that international opportunities in rail were
being assessed in order to support growth and increased resilience against UK
rail investment uncertainty, leveraging its market-leading capabilities.  The
Group has now incorporated Van Elle Canada Inc ahead of major rail
infrastructure and electrification opportunities in Ontario for which it is
well positioned to commence works during FY24.

 

 

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 Rail, and Ground Engineering Services; 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 and Rail
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 over 120 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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