REG - Van Elle Holdings - Prelim Results, Analyst & Investor Presentations
23/07/2025 07:00
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RNS Number : 1365S Van Elle Holdings PLC 23 July 2025
23 July 2025
Van Elle Holdings plc
('Van Elle', the 'Company' or the 'Group')
Unaudited Preliminary Results for the year ended 30 April 2025
Analyst Briefing & Investor Presentation
Positioned for growth across key markets
Van Elle Holdings plc, the UK's largest ground engineering contractor,
announces its unaudited results for the year ended 30 April 2025.
Note: Van Elle Canada Inc. has been classified as a discontinued operation and
is excluded from the Group's financial results, which are presented below as
continuing operations. The prior year comparatives have been restated
accordingly. See note 4 for further details of discontinued operation
performance.
£m Year ended Year ended
30 April 2025 30 April 2024
Continuing operations:
Revenue(1) 130.5 139.1
Underlying EBITDA(2) 13.9 14.5
Underlying operating profit(3) 5.5 6.9
Operating profit 4.9 7.2
Underlying operating profit margin(3) 4.2% 5.0%
Underlying profit before taxation(3) 5.3 6.7
Profit before taxation 4.6 7.1
Underlying basic earnings per share 3.5p 4.5p
Basic earnings per share 2.9p 5.0p
Net funds excl. IFRS 16 property and vehicle lease liabilities(4) 1.1 5.5
Net funds / (debt) (4) (4.0) 0.6
Underlying return on capital employed 11.2% 13.6%
Total dividend for the year 1.2p 1.2p
Discontinued operations:
Discontinued operation loss before tax (1.7) (1.4)
Underlying profit before tax (continuing and discontinued operations) 3.6 5.3
Profit before tax (continuing and discontinued operations) 3.0 5.8
1. Revenue including discontinued operations in year to 30 April 2025 of
£134.0m (30 April 2024: £139.5m).
2. EBITDA is defined as earnings before interest, tax, amortisation and
depreciation.
3. Non-underlying items in the year to 30 April 2025 relate to costs
(£86,000) and deferred consideration (£410,000) associated with the
acquisition of Albion Drilling, and Group restructuring costs (£116,000).
4. Net funds/(debt) is defined as cash and cash equivalents less loans
and borrowings and lease liabilities. IFRS 16 property and vehicle lease
liabilities as at 30 April 2025 were £5.1m (30 April 2024: £4.9m).
Highlights
· Resilient performance delivered against a backdrop of macroeconomic
uncertainty and continued market headwinds.
· Revenue from continuing operations of £130.5m (FY2024: £139.1m),
representing a 6% year-on-year decrease, demonstrating a robust performance
given the challenges.
· Underlying operating profit of £5.5m (FY2024: £6.9m), underpinned
by a strong performance in Specialist Piling and Rail, offset by weaker
volumes in General Piling.
· Underlying operating margin of 4.2% (FY2024: 5.0%), reflecting lower
activity levels partially mitigated by ongoing cost control initiatives.
· Underlying return on capital employed of 11.2% (FY2024: 13.6%),
impacted by lower earnings but supported by ongoing efforts to optimise asset
utilisation and capital discipline.
· Residential sector softness impacted volumes negatively, including
significant delays to the Building Safety Act approvals process.
· The Canadian subsidiary, which is no longer considered core for the
Group, is treated as a discontinued operation and the Board's strategic review
is expected to conclude during FY2026.
· Successful acquisition of Albion Drilling in October 2024,
significantly enhancing the Group's technical offering and expanding its
footprint in Scotland, with a strong focus on energy sector growth.
· Disciplined capital management maintained resulting in a strong
balance sheet with a bank facility of up to £8.0m to support and underpin
organic growth as well as to fund bolt-on M&A opportunities.
· Proposed final dividend of 0.8 pence per share, maintaining a full
year dividend of 1.2p (FY2024: 1.2p), reflecting the Board's confidence in the
outlook and commitment to shareholder returns.
Current trading and outlook
· The Group is in a strong position to benefit from anticipated
improvements across its core end markets.
· Significant opportunity in the energy sector, where revenues are
expected to reach £40m per annum from FY2027 (less than £5m sector revenue
delivered in FY2025), based on our assessment of targeted projects in the
planning pipeline.
· Residential sector expected to recover in the medium term, supported
by several government commitments to increase housing supply and recent
measures aimed at addressing delays associated with the Building Safety Act.
· Increased activity in the rail and water sectors is anticipated,
aligned with investment under CP7 and AMP8 regulatory cycles, respectively.
· Continued focus on fleet reorientation towards higher margin
opportunities, with capital allocation prioritised to support growth in
infrastructure sectors.
· Strategic partnership agreed with VolkerWessels UK post year-end,
including the acquisition of concrete piling assets of Volker Ground
Engineering, further strengthening the Group's customer base in
infrastructure.
· Order book has grown to £41.5m as at 30 April 2025 (30 April 2024:
£35.1m), and increased to £52.7m as at 30 June 2025 (30 June 2024: £35.3m).
· The Board remains confident in achieving the recently revised market
expectations for the current year(*).
* Company compiled analyst consensus for FY2026 is revenue of £149.1m and
underlying profit before tax of £6.4m.
Mark Cutler, Chief Executive, commented:
"Whilst FY2025 presented challenges, Van Elle succeeded in delivering a
resilient performance and continuing to broaden its range of complementary
services, both organically and by selective acquisition. As a result, the
Group remains in a very strong position to benefit from expected improvements
in many of its end markets, most of which are aligned with the Government's
investment priorities.
"With a strong existing order book and solid balance sheet, the business
continues to win important new framework agreements and partnerships, which
gives the Board confidence in the prospects for the Group."
Analyst Briefing: 10.00am on Wednesday 23 July 2025
A briefing for Analysts will be held at 10.00am this morning - Wednesday 23
July 2025. 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 23 July 2025
Mark Cutler, Chief Executive Officer, and Graeme Campbell, Chief Financial
Officer, will hold a presentation to review the results and update its growth
strategy at 3.30pm on Wednesday 23 July 2025, 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.
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 Joint Broker) Tel: 020 7418 8900
Ed Allsopp
Charlotte Sutcliffe
Tom Graham
Dowgate Capital Limited (Joint Broker) Tel: 020 3903 7715
James Serjeant
Nicholas Chambers
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.
CHAIRMAN'S STATEMENT
Overview
The Group has delivered a resilient performance, in line with revised
expectations, despite a challenging macroeconomic backdrop and continued
softness across some of our core markets.
Activity levels improved towards the end of the first half, however this
momentum was not sustained throughout the second half as market conditions
deteriorated. Revenue was primarily impacted by project delays as customers
deferred decisions in response to macroeconomic and sector-specific
uncertainties.
While trading conditions were subdued by broader market issues, including the
Building Safety Act delaying residential schemes in housing and the transition
from CP6 to CP7 in rail, there is optimism that workflow pipelines are
unblocking, with the Group well-placed to service these delayed opportunities.
As we had identified, the energy sector in Scotland is proving to be a
significant area of opportunity and is expected to play an increasingly
important role in the Group's growth over the medium term. Further detail is
included in the Chief Executive's Report.
The Board are reviewing strategic options of the Canadian subsidiary, which is
treated as a discontinued operation in these financial results. The Board's
strategic review is expected to conclude during FY2026.
Looking ahead, the Board remains confident that Van Elle is strongly
positioned to benefit from a market recovery. With a highly diversified
service offering, comprehensive UK regional coverage and strong sector
alignment, the Group is well placed to support accelerating activity in
housing and infrastructure. As these markets recover and investment and
positive sentiment begin to return, the Group operates early in the supply
change and therefore expects to benefit from early momentum, underpinned by a
growing order book and robust pipeline of opportunities.
Capital structure and allocation
The Group continues to maintain a strong balance sheet, with low levels of
debt and access to a flexible borrowing facility of up to £8.0m.
As part of our ongoing focus on maximising return on capital employed, the
Group has taken proactive steps to streamline its asset base and release
capital from non-core assets. During the second half of the year, the sale of
underutilised freehold land and buildings generated £1.6m in cash proceeds.
Following the year end, the Group also completed the disposal of its transport
fleet to WS Specialist Logistics, alongside entering into an outsourced
transport services arrangement. This transaction generated a further £2.9m in
cash and enables enhanced operational flexibility while reducing capital
intensity. In light of these developments, the Group's borrowing facility was
reduced from £11.0m to £8.0m in May 2025. The facility remains revolving in
nature, secured against receivables and certain tangible assets and is
committed through to September 2026.
As at 30 April 2025, net funds (excluding IFRS 16 lease liabilities) stood at
£1.1m (30 April 2024: £5.5m). Cash flow movements during the year included:
· £3.4m in acquisition consideration;
· £1.3m in dividend payments;
· An increase in working capital, including delayed R&D tax
credit receipts (received in full post year-end);
· A £2.4m outflow from the discontinued Canadian operation; and
· £5.9m of new debt drawn, comprising both facility usage and new
hire purchase arrangements.
The Group remains committed to investing in its market-leading fleet of
approximately 150 rigs. Capital expenditure for the year totalled £5.0m
(FY2024: £5.5m), with £3.6m funded from cash resources. Spend was modestly
below expectations, primarily due to extended lead times on new rig deliveries
and prudent capital management in light of ongoing market volatility.
The Board continues to evaluate selective bolt-on acquisition opportunities
that are earnings accretive and strategically aligned with the Group's core
capabilities. This disciplined approach ensures that future acquisitions will
enhance the Group's long-term value and strengthen its market position.
Dividend
The Board remains committed to delivering sustainable shareholder returns,
whilst maintaining a prudent and balanced approach to capital allocation. This
reflects the Group's ongoing investment requirements, particularly in
maintaining a market-leading fleet of rigs, as well as the strategic
opportunities available to support long-term growth.
Following another year of profitable performance, the Board is pleased to
recommend the payment of a final dividend of 0.8p per share (FY2024: 0.8p per
share). If approved, the proposed FY2025 will be paid on 17 October 2025 to
shareholders on the register as at the close of business on 3 October 2025.
The shares will be marked ex-dividend on 2 October 2025.
An interim dividend of 0.4p per share (FY2024 interim dividend: 0.4p per
share) was paid on 14 March 2025. The total dividend payable for FY2025 will
therefore be 1.2p (FY2024: 1.2p).
Our people
We are committed to acting in a safe, sustainable, and responsible manner and
recognise this is key to the long-term success of the business.
Health, safety, and wellbeing is our main priority, and we have made excellent
progress in recent years to improve our safety performance. The RIDDOR
Accident Frequency Rate (AFR) increased slightly to 0.12 in FY2025 (FY2024:
zero).
On behalf of the Board, I would like to thank all our employees for their hard
work and commitment over the past year, and during this period of challenging
market conditions.
Board and governance
The Board's composition is reviewed regularly to ensure that we continue to
have an appropriate mix of expertise and experience within the Board. There
were no changes to the Board in the current year, which has provided a stable
platform as we continue to deliver the Group's strategy.
In the previous year, a comprehensive internal performance review was
completed, with an associated action plan developed to ensure continuous
improvement of the Board's effectiveness.
I would like to extend my thanks to my Board colleagues for their significant
contribution and commitment over the past year.
The Group is committed to the highest standards of corporate governance and
prioritises effective shareholder communication and engagement. We continue to
adopt the Quoted Companies Alliance Corporate Governance Code, complemented
with other suitable governance measures appropriate for a group of our size.
Outlook
While market conditions remained challenging throughout FY2025 and into the
early part of the new financial year, the Group is well-positioned to benefit
from an anticipated recovery across several of its core sectors.
The medium-term outlook for our end markets is increasingly positive. In the
housing sector a market recovery is expected, supported by recent government
measures to accelerate Building Safety Act approvals, which would unlock a
number of delayed residential schemes.
The energy sector continues to represent a significant long-term growth
opportunity. Based on our assessment of targeted projects currently in the
planning pipeline, we anticipate revenue in this sector could grow materially,
expected to reach £40m a year by FY2027, with less than £5m revenues
delivered in this sector in FY2025.
Alongside this improving market backdrop, the Group remains focused on
disciplined capital allocation and actively reorienting the business toward
higher-margin, higher-growth opportunities. This focus is expected to drive a
progressive improvement in return on capital employed, supporting sustainable
long-term value creation.
With a diversified service offering, a growing and high-quality order book,
and exposure to structurally important sectors such as infrastructure, energy,
and housing, the Group remains confident in its outlook and is well placed to
capture emerging growth opportunities as activity levels recover.
Frank Nelson
Non-Executive Chair
22 July 2025
CHIEF EXECUTIVE'S STATEMENT
OPERATING REVIEW
Results
The Group delivered another resilient financial performance in FY2025 whilst
market conditions remained very challenging across the sector with significant
levels of uncertainty across the UK economy. In the piling industry, many
businesses experienced lower volumes over recent months. Despite the softer
market conditions, our revenue was only 6% below the prior year at £130.5m
(FY2024: £139.1m).
In the residential sector, volumes were subdued throughout FY2025 as increased
mortgage rates and general market uncertainty resulted in housebuilders
commencing fewer project starts, particularly in the private housing market.
Taller residential schemes were severely impacted by the Building Safety Act
approvals process, which has caused significant delays to the commencement of
numerous schemes, particularly in London.
In regional construction, similar market uncertainties have impacted
investment, resulting in project delays throughout the year. The Group
delivered several logistics hubs, data centres, commercial offices and
industrial projects in the period and has now started its largest industrial
project for several years at Forgemasters in Sheffield. Our outlook is
positive in this sector as confidence starts to return during FY2026.
In infrastructure, UK rail revenues were impacted as the sector transitioned
from CP6 into CP7, but were supported by our strong position on the
TransPennine Route Upgrade project. In highways, works were completed very
successfully on the Smart Motorways retrofit programme. Despite funding
pressures and project delays, several major highways schemes were delivered in
partnership with Galliford Try, with others in the pre-construction phase.
The Group is very well-positioned in the energy sector, where frameworks have
been developed with several key customers supporting a very strong pipeline of
opportunities, commencing primarily with ground investigation and design in
FY2026, and foundation construction works commencing from FY2027 and beyond.
Our broad capability is attractive to customers requiring a range of solutions
to support the major energy sector projects. The acquisition of Stirling-based
Albion Drilling in October 2024 provides additional capacity and specialist
capability in Scotland, where many of the initial projects will commence
across several investment streams, including Ofgem's Accelerated Strategic
Transmission Investment (ASTI) programme.
The Government's recent Spending Review and 10-year UK Infrastructure Strategy
and pipeline give increased confidence of the infrastructure sector being a
key driver of growth for Van Elle in the medium to long term.
The Group's Canadian rail subsidiary delivered revenue growth but has been
impacted by further delays to the Toronto Metrolinx GO Expansion programme,
which was the primary reason for entering the Canadian rail market. Whilst we
have been awarded contracts across the broader rail sector in Ontario, we have
not yet been able to deliver adequate volumes to achieve a profitable
performance. The Canadian subsidiary is under strategic review, which is
expected to be concluded during FY26.
We have maintained a high focus on cost saving measures 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 underlying profit before tax for continuing operations of
£5.3m (FY2024: £6.7m). Underlying operating margin was 4.2% (FY2024: 5.0%).
Balance sheet and net funds
The Group continues to maintain a strong balance sheet, low debt and
significant liquidity headroom against its funding facility.
Net funds, excluding IFRS 16 property and vehicle lease liabilities, decreased
to £1.1m at 30 April 2025 (30 April 2024: £5.5m). This reduction in net
funds reflects cash outflows to support future growth, including £3.4m of
consideration paid for acquisitions and capital expenditure of £5.0m, of
which £3.6m was funded from cash reserves. To support these investment
activities, the Group took on new debt of £5.9m in the year from a
combination of a facility drawdown and new hire purchase contracts.
Working capital increased by £3.5m in the year, which includes the impact of
£1.3m of delayed receipts for R&D tax claims (which were received after
the year end) and the acquired balance sheet of Albion Drilling following the
acquisition in October 2024. Aged debtors remain within the normal historical
range for the Group with no significant debt collection issues anticipated as
at the year end.
Dividends of £1.3m were paid in the year.
Group net debt remains well within our target leverage threshold of less than
1.5 times EBITDA.
Health and safety
The health, safety, and well-being of our employees is our first priority. We
have made excellent progress in recent years delivering a significantly
improved safety culture, which is reflected in the Group's Health and Safety
KPIs.
In February 2024 the Group achieved a significant milestone of two years
without a reportable accident (RIDDOR). Across FY2025 our RIDDOR Accident
Frequency Rate (AFR) per 100,000 hours worked was 0.12 (FY2024: zero).
Our health, safety, quality and environment managers are embedded within the
operational teams and conduct regular internal audits of our health and safety
procedures and site activities. This ensures that our safety procedures are
comprehensive and helps to identify areas for improvement where necessary.
People
Our people remain at the core of everything we do, and we are committed to
attracting, developing, and retaining the talent needed to deliver safely and
successfully across all areas of the business.
Our in-house training centre coordinates and delivers the Group's training
needs. Following the successful launch of our Leadership Development
Programme, a second cohort of future business leaders entered the programme in
FY2025.
We also launched a bespoke site supervisor training programme to strengthen
the leadership of our site management. The course was delivered to supervisors
over three days, focused on practical, real-life scenarios to enhance
supervisory skills, site safety, and management practices.
We are proud to maintain our commitment to early careers. The Group currently
employs 36 apprentices, graduates under a formal development programme, and
trainees.
Voluntary employee churn remained low at 13% (FY2024: 14%).
Strategy
Our medium term financial KPIs (annual revenue growth of 5-10%, underlying
operating margins of 6-7%, ROCE of 15-20% and leverage of less than 1.5 times
EBITDA) are the Group's primary strategic objectives.
Key strategic highlights in the year, which position the Group well for FY2026
and beyond, include:
- 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 transmission schemes as
part of Ofgem's Accelerated Strategic Transmission Investment (ASTI)
programme.
- Acquired Albion Drilling, expanding Van Elle's presence in Scotland
and further extending the Group's technical capabilities.
- Investment in sheet piling/rigid inclusion rigs and expansion of our
civils capability to strengthen our integrated offering.
- Completed a capacity expansion project at the precast factories at our
headquarters in Kirkby-in-Ashfield. The expanded pile factory increases
production capacity by over 30%, positioning the business well to benefit from
the expected growing demand in the housing sector over the mid-term.
- Established a strategic collaboration with M&J Evans to work
together nationally on a customer-led basis to offer a more efficient,
joined-up delivery model for housebuilders.
- Increased focus on Group ROCE performance resulting in the disposal of
non-core property and several aged rig assets. The Group also outsourced all
HGV fleet activities after the financial year end.
- Settlement of a long-standing legacy contract dispute (from 2012) in
June 2024, within the Group's insured limits of cover.
Sustainability and ESG
The Group has implemented a Sustainability Strategy, aligned with the UN
Sustainable Development Goals ("SDGs") that are applicable to the business
operations. We recognise that our core operations rely on energy-intensive
materials such as cement and steel. These industries are moving fast and
making significant progress in developing cleaner technology for their
manufacturing and operational processes.
Our long-term net zero by 2050 commitment is supported in the medium term by a
roadmap to 2030 which provides a clear strategic pathway to a 30% reduction in
our greenhouse gas emissions.
Our people actively engage with local communities, reinforcing our dedication
to creating social value and making a long-term positive impact. We also
collaborate with schools, colleges and universities to raise awareness of
careers in construction, engineering, and geotechnical services.
Markets
The Group operates in three market segments:
· Residential constituted 40% of Group revenues in the year (down
from 41% in FY2024). Divisional teams deliver integrated piling and foundation
systems for national and regional housebuilders, retirement homes, and
multi-storey residential properties.
Residential sector revenues decreased to £52.0m in FY2025 (FY2024: £57.2m).
In new build housing, demand was very strong in the first quarter of the
previous financial year, making for a difficult comparator this year. New
building regulations introduced towards the end of Q1 FY2024, resulted in the
acceleration of multiple housing projects and provided a one-off increase to
prior year revenues.
Volumes were subdued throughout FY2025, where increased mortgage rates and
general market uncertainty resulted in housebuilders commencing fewer
projects, 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, but overall activity levels were
below prior year levels by approximately 2%.
Notwithstanding the current challenging market conditions, the outlook for
housebuilding remains very strong in the UK, supported by government pledges
to build 1.5 million new homes in the current parliament and to speed up the
planning process. The speed of delivery of the offsite manufactured Smartfoot
system means that the division is well-positioned to support faster build
times with less resources during a widely publicised skills shortage and to
respond quickly as the market improves. Following some positive momentum
towards the end of the first half of the financial year, order levels declined
during the second half. However, the housing division is starting to see early
signs of market improvement, and we are optimistic of sustained market
improvement during FY2026.
The Group also delivers foundations for taller residential schemes, where the
impact of the Building Safety Act has caused significant delays to the
commencement of numerous schemes, particularly in London. Recent announcements
by the government to recognise the issue and put processes in place to speed
up decisions on new build schemes is encouraging.
During FY2025, we invested in our precast pile factory to expand capacity by
over 30% and have further diversified our capabilities by offering in-situ
beams. A collaboration with leading groundworker M&J Evans was also
established to offer a joined-up service to major housebuilders.
· Infrastructure constituted 42% of Group revenues in the year (up
from 39% in FY2024). The segment includes specialist ground engineering
services to the rail, highways, coastal and flooding, energy, and utility
sectors.
UK Rail revenues were impacted as the sector transitioned from CP6 into CP7,
but activity levels steadily improved in the second half, supported by our
strong position on the TransPennine Route Upgrade project.
Planned works in CP7 include greater focus on climate-related activities
including slope stabilisation and drainage improvements which are expected to
benefit the Group during the peak of CP7 activity during FY2027 to FY2029.
In the energy sector, frameworks have been agreed with several key customers.
We have a promising pipeline of opportunities, commecing primarily with design
and ground investigation projects in FY2026, with major foundation activities
commencing from FY2027 and beyond.
As previously announced, 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.
Further progress has been made in the water sector, where investment under
AMP8 is committed to almost double compared to AMP7. Customer partnerships
exist across several regions including the previously announced partnerships
with Galliford Try and Volker Wessels. Design solutions have been developed
based on the Group's ScrewFast system which modularises and standardises
simple foundations for lower carbon and faster delivery compared to
traditional methods.
Government spending in the highways sector continues to be subdued, with works
now completed on the Smart Motorway programme. The Group is focusing on
delivering mid-sized projects for selected Tier 1 contractors in this sector.
· Regional Construction constituted 18% of Group revenues (from 19%
in FY2024). 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 regional construction market remained very competitive throughout the
year, with work-winning being extremely price sensitive. With a backdrop of
softer market conditions resulting in lower tender opportunities this year,
revenue decreased by 9%, primarily due to fewer larger schemes delivered by
the General Piling division.
Industrial markets covering factories, data centres, and warehousing continue
to offer significant opportunity for the Group's range of piling and ground
improvement services as market confidence returns.
Operating structure
Van Elle's operational structure has remained consistent and is reported in
three segments:
· General Piling: open site; larger projects; key techniques being
large diameter rotary, CFA piling, precast driven piling, rigid inclusions,
and vibro stone columns.
· 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 19% in the year to £46.0m (FY2024: £56.7m),
representing 35% of Group revenues.
The General Piling division operates across all of the Group's market segments
and has been impacted by weaker market conditions, with limited opportunities
for larger scale projects.
Residential sector revenues decreased by 21% compared to the previous year
which primarily reflects challenging market conditions in both new build
housing and high-rise residential activity. The division has been materially
impacted by the Building Safety Act, which has caused delays to start dates of
taller residential schemes, significantly impacting profitability,
particularly in the London market.
Infrastructure revenue decreased by 23%, 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 more broadly impacted by lower
confidence in the UK building market and as a result continued to be highly
competitive with minimal large-scale opportunities.
Underlying operating profit for the division decreased to £0.6m (FY2024:
£5.2m).
Specialist Piling and Rail
Revenue increased by 6% in the year to £46.1m (FY2024: £43.5m), representing
35% of Group revenues.
Specialist Piling activity levels increased by 6% compared to the previous
year, reflecting completion of works on the Smart Motorway programme and
stronger work-winning compared to a softer comparative period which was
impacted by delays to highways work and a decrease in drill and grout
activity. Contract margins remained strong due to the highly skilled nature of
site works.
In the UK Rail sector, revenue was broadly flat compared to the previous year.
The first half of the financial year saw subdued workload as the sector
transitioned from CP6 into CP7 but second half activity levels recovered,
supported by our operations on the TransPennine Route Upgrade project.
The medium and long-term outlook for the division's work in the infrastructure
sector remains very encouraging, with significant growth opportunities in the
high-voltage power sector supporting the development of the UK's electricity
transmission networks, increased market share and spend as AMP8 in the water
sector gains momentum, similar recovery in rail as CP7 spend levels normalise
and stable revenues in highways as selected projects move towards
construction.
Underlying operating profit for the division increased to £5.3m (FY2024:
£2.6m).
Ground Engineering Services
Revenue was broadly consistent with the previous year at £38.1m (FY2024:
£38.3m), representing 29% of Group revenues.
Ground Engineering Services consists of the Group's 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 approximately 2% 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 (as housebuilders rushed to start projects before the
legislation changed), before a decline in activity levels from the second
quarter. The housing division is starting to see early signs of market
improvement, and we are optimistic of sustained market improvement during
FY2026.
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.
Following subdued activity levels in Strata during the first half of the
financial year, strong progress was achieved in the second half with a
significant increase in workload from the energy sector in Scotland. FY2025
revenue was slightly ahead of the prior year. Strata has a £30-40m pipeline
of opportunities in the energy sector in Scotland over the next three years.
Underlying operating profit for the division was broadly consistent with prior
year at £0.9m (FY2024: £0.9m).
Rig fleet
The Group operates over 150 rigs, and we continue to invest in the fleet to
ensure that our market-leading capability is maintained. Investment decisions
prioritise high utilisation and high margin activities where possible.
Total capital expenditure in the year was £5.0m (excluding new IFRS 16
leases), of which £3.6m was funded from cash reserves, primarily relating to
acquisition of new rigs and some additional investment in the Group's
property.
The Group also acquired £2.4m of plant and equipment at fair value (excluding
leased assets) as part of the acquisition of Albion Drilling.
Outlook
Van Elle remains in a very strong position to benefit from expected
improvements in many of our end markets.
The outlook for UK housebuilding is very strong in the medium term, with the
government pledging 1.5 million new homes in the current parliament. For
high-rise developments, the recent announcements by the Government to address
Building Safety Act delays are encouraging.
In construction we are seeing an increased level of confidence for industrial
schemes including logistics, data centres, prisons, schools and hospitals.
In infrastructure, the government's recent Spending Review and 10-year UK
Infrastructure Strategy and pipeline, give increased confidence for the sector
to be a key driver of growth.
A key area of focus is the energy sector, where there are committed levels of
investment and an expected national shortage of skills to deliver planned
works in the UK. Van Elle is very well positioned to maximise the opportunity
with a large skilled workforce and a broad range of capability to deliver on
all ground engineering requirements. Revenues from the energy sector are
expected to reach £40m per annum from FY2027 for 5-10 years, potentially 20%
of Group revenues, from less than 5% currently.
Growth in the Rail and Water sectors is also anticipated, as activity levels
are expected to accelerate during the CP7 and AMP8 investment cycles.
Key to all the above are the growing number of strategic customer partnerships
that the Group has created with its top 5 customers in each sector, supported
by frameworks or trading agreements. As a further example, a strategic
partnership with VolkerWessels UK has commenced, including the acquisition of
the concrete piling assets of Volker Ground Engineering.
The order book has grown to £41.5m as at 30 April 2025 (30 April 2024:
£35.1m) and increased further to £52.7m as at 30 June 2025 (30 June 2024:
£35.3m).
With exposure to the UK housing and infrastructure markets, our future
confidence is supported by an increasing high-quality order book, coupled with
a strong pipeline of future opportunities in our key markets.
Mark Cutler
Chief Executive Officer
22 July 2025
CHIEF FINANCIAL OFFICER'S STATEMENT
FINANCIAL REVIEW
Continuing revenue in the year to 30 April 2025 was below the previous
financial year, down 6.1% in total. The reduction in revenues was driven
primarily by softer market conditions due to market uncertainties. The
residential and regional construction sectors have been impacted by lower
levels of demand and project delays throughout the financial year. A strong
end to the previous financial year resulted in a greater decline in H2 than H1
although total revenues were relatively balanced across the two halves of the
year despite the traditionally low volume winter months within H2.
The Group's Canadian rail subsidiary delivered revenue growth during the year
but has been impacted by further delays to the Toronto Metrolinx GO Expansion
programme. As such, strategic options are under review and the Canadian
operation is treated as a discontinued operation in the financial results. The
results of the Canadian operation are not included in this financial review.
2025 2024 Change 2025 2024
£'000 £'000 % % %
H1 65,163 68,210 (4.5) 49.9 49.0
H2 65,302 70,867 (7.9) 50.1 51.0
Revenue 130,465 139,007 (6.2) 100.0 100.0
The Group tracks enquiries and activity levels by market sector, which helps
to identify trends and target our activities into growth areas. The mix of
revenue by end markets is shown below:
2025 2024 Change 2025 2024
£'000 £'000 % % %
Residential 52,000 57,197 (9.1) 39.9 41.1
Infrastructure 54,236 54,820 (1.1) 41.6 39.4
Regional construction 23,761 26,202 (9.3) 18.2 18.8
Other 468 858 (45.5) 0.3 0.7
Revenue 130,465 139,077 (6.2) 100.0 100.0
Residential: Volumes were subdued throughout FY2025, where increased
mortgage rates and general market uncertainty resulted in housebuilders
commencing fewer projects, particularly in the private housing market. Taller
residential schemes were severely impacted by the Building Safety Act
approvals process, which has caused significant delays to the commencement of
numerous schemes, particularly in London.
Infrastructure: Government spending in the highways sector continues to be
subdued, with works now completed on the Smart Motorway programme. UK Rail
revenues have been impacted as the sector transitioned from CP6 into CP7, but
activity levels steadily improved in the second half, supported by our strong
position on the TransPennine Route Upgrade project. In the energy sector,
frameworks have been agreed with several key customers. 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.
There is a pipeline of opportunities, commencing primarily with design and
ground investigation projects in FY2026, with major foundation activities
commencing from FY2027 and beyond. Further progress has also been made in the
water sector, where investment under AMP8 is committed to almost double
compared to AMP7.
Regional construction: The regional construction market remained very
competitive throughout the year, with work-winning being extremely price
sensitive. With a backdrop of softer market conditions tender opportunities
reduced in the year.
The mix of revenue by operating segment is shown below:
2025 2024 Change 2025 2024
£'000 £'000 % % %
General Piling 46,027 56,686 (18.8) 35.3 40.8
Specialist Piling and Rail 46,099 43,469 6.1 35.3 31.3
Ground Engineering Services 38,138 38,317 (0.5) 29.2 27.6
Head Office 201 605 (66.8) 0.2 0.3
Revenue 130,465 139,077 (6.2) 100.0 100.0
The General Piling division operates across all of the Group's market segments
and has been impacted by weaker market conditions, with limited opportunities
for larger scale projects. The previous year benefitted from a large
energy-from-waste contract, contributing approximately £7m revenue in H1 of
FY2024. The division has been materially impacted by the Building Safety Act
in FY2025, which has caused delays to start dates of taller residential
schemes. This has largely impacted the Group's London operations which
reported a loss before tax of £1.6m in the year.
Specialist Piling activity levels increased compared to the previous year,
reflecting completion of works on the Smart Motorway programme and stronger
work-winning compared to a softer comparative period which was impacted by
delays to highways work and a decrease in drill and grout activity. In the UK
Rail sector, revenue was broadly flat compared to the previous year. The first
half of the financial year saw subdued workload as the sector transitioned
from CP6 into CP7 but second half activity levels recovered, supported by our
operations on the TransPennine Route Upgrade project.
Ground Engineering Services consists of the Group's Housing division and
Strata Geotechnics ('Strata'). Housing division revenues decreased by
approximately 2% compared to the previous year as volumes continued to be
subdued throughout the period. 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. Following subdued activity levels in Strata
during the first half of the financial year, strong progress was achieved in
the second half with a significant increase in workload from the energy sector
in Scotland.
Head office revenues relate to the provision of training services delivered
through the training facility located at Kirkby-in-Ashfield.
Operating profit
Total operating profit and total underlying operating profit declined in
FY2025 due to lower activity levels. Gross margin improved by 0.7% in FY2025
to 31.0% (FY2024: 30.3%). This improvement is predominately due to mix with
subdued housing volumes where margins are typically at the lower end of the
Group's margin range and increased volumes in the Group's more specialist
activities which achieve a higher margin rate. Administrative expenses were
consistent year on year. The Group's underlying operating profit includes
income from R&D tax credits of £2,833,000 (FY2,365,000).
On an underlying basis the Group reports an operating margin of 4.2% (FY2024:
5.0%).
2025 2024
£'000 £'000
Operating profit 4,875 7,233
Operating margin 3.7% 5.2%
Underlying operating profit 5,487 6,900
Underlying operating margin 4.2% 5.0%
Alternative performance measures
The Group presents alternative performance measures (APMs), which are not
defined or specified under the requirements of IFRS. The Group believes that
these APMs provide depth and understanding to the users of the financial
statements to allow for further assessment of the underlying performance of
the Group and comparability from one year to the next.
The Board believes that the underlying performance measures for operating
profit, profit before tax and EPS, stated before the adjustment for
non-underlying items give a clearer indication of the actual performance of
the business.
The Group's non-underlying items in FY2025 include £86,000 of fees associated
with the acquisition of Albion Drilling on 28 October 2024 as well as
£410,000 of contingent deferred consideration in relation to the acquisition.
A condition of the deferred consideration requires the sellers to remain in
employment during the deferred consideration period and as such this has been
treated as remuneration and recognised as a non-underlying cost in the profit
and loss. Management restructure costs of £116,000, being the remaining costs
incurred in the restructure programme which commenced at the end of FY2024 are
also classified as non-underlying.
The Group's non-underlying items in FY2024 include £228,000 of fees
associated with the acquisition of Rock & Alluvium on 30 November 2023, a
health and safety penalty of £250,000 in relation to the fatality of a third
party haulier following the failure of a Van Elle piling rig in April 2021,
management restructure costs of £83,000 being the initial costs incurred for
a restructure programme which commenced at the end of FY2024, research and
development credits of £894,000 relating to FY2022 and FY2023 which are
considered one-off in nature, and a credit of £149,000 for interest received
on a protracted legal settlement that was concluded after the year end.
Net finance costs
Net finance costs were £227,000 in the current year (2024: £237,000).
Finance costs relate to interest on hire purchase agreements and interest on
property and vehicle lease liabilities classified under IFRS 16. In FY2025 net
finance costs include £186,000 of interest received on cash balances (2024:
£102,000).
Taxation
The effective tax rate in the year is 32.0% (2024: 25.7%). The increased
effective tax rate in the current financial year is as a result of the
deferred contingent consideration charged to the p&l as remuneration which
is not tax deductible together with an under provision in the previous year.
Dividends
An interim dividend of 0.4p (2024: 0.4p) was paid on 14 March 2025. The
Board is recommending a final dividend of 0.8p (2024: 0.8p) taking the total
dividend payable for the year to 1.2p (2024: 1.2p).
Subject to approval at the Annual General Meeting on Thursday 25 September,
the recommended final dividend will be paid on 17 October 2025 to shareholders
on the share register as at 3 October 2025. The associated ex-dividend date
will be 2 October 2025.
Earnings per share
Underlying continuing basic earnings per share was 3.5p (2023: 4.5p), based on
an underlying continuing profit before tax of £5,260,000 (2024: £6,662,000).
Continuing basic earnings per share was 2.9p (2023: 5.0p).
Underlying continuing diluted earnings per share was 3.5p (2023: 4.5p)
following vesting of a grant of options made under the Group's LTIP scheme in
2020 during the previous financial year. Continuing diluted earnings per share
was 2.9p (2023: 4.9p).
Balance sheet
2025 2024
£'000 £'000
Fixed assets (including intangible assets) 41,421 46,662
Assets held for sale net of associated liabilities 5,557 -
Net working capital 17,024 13,584
Net funds / (debt) (3,983) 623
Deferred consideration - (2,120)
Taxation (5,569) (5,342)
Net assets 54,450 53,407
Net assets increased by £1.1m to £54.5m (2024: £53.4m). Underlying ROCE
decreased in the period to 11.2% at 30 April 2025 (2024: 13.6%) given the
reduced profitability in the year and the timing of the acquisition of Albion
Drilling which contributed only six months of revenues and profits in the
current year.
The Group invested £5.0m in capital over the course of the year, of which
£3.6m was funded from cash resources. Investment included the purchase of a
rig to support further rigid inclusions growth, a capability which has
experienced growing demand in recent years and a rig to replace the aged but
highly utilised rigs within the General Piling division to support deep CFA
piling. The acquisition of Albion Drilling added £1.5m of fixed assets, net
of outstanding lease liabilities, to the Group's balance sheet including 17
rigs.
Overall, the Group's fixed assets have reduced by £5.3m since 30 April 2024.
During the year action has been taken to rationalise the Group's asset base in
order to improve ROCE. In March 2025 the Group sold its old head office site
and adjacent land for a total of £1.6m realising a profit on disposal of
£0.4m. Immediately following the year end on 7 May the Group sold its entire
heavy haulage fleet and outsourced its transport services function to WS
Specialist Logistics Limited for total consideration of £2.9m removing £2.5m
of assets from the balance sheet. The transport assets as well as the assets
and liabilities of the Canadian operation including £2.3m of fixed assets are
classified as held for sale at 30 April 2025.
Working capital (defined as inventories, trade and other receivables, trade
and other payables and provisions) increased to £17.0m (2024: £13.6m), of
which £0.5m was introduced on the acquisition of Albion Drilling. This
increase includes £1.3m of delayed receipts for R&D tax claims, relating
to FY2023, which were received after the year end. Aged debtors remain within
the normal historical range for the Group with no significant debt collection
issues anticipated as at the year end.
During the year a longstanding legal claim with a customer regarding the
consequences of failures in piling work was settled at £7.0m. The claim was
covered by the Company's professional indemnity insurance and was settled
within the insurance cap. The associated liability and insurance recoverable
have been released in the current financial year.
Net funds
2025 2024
£'000 £'000
Cash and cash equivalents 7,204 6,002
Loans and borrowings (4,444) -
Lease liabilities (6,743) (5,379)
Net (debt)/funds (3,983) 623
Net funds excluding IFRS 16 property and vehicle lease liabilities 1,087 5,481
Net funds have reduced during the year to a net debt position of £4.0m as at
30 April 2025 (2023: net funds of £0.6m). Whilst total cash and cash
equivalents increased to £7.2m as at 30 April 2025 (2024: £6.0m) the Group
has taken on new debt of £5.9m in the year from a combination of facility
drawdown and new hire purchase contracts to support future growth, including
£3.4m of consideration paid for acquisitions and capital expenditure of
£5.0m.
Hire purchase debt as at 30 April 2025 totals £3.0m (2024: £0.4m) of which
£1.4m is disclosed as loans and borrowings and £1.6m is disclosed as lease
liabilities. The acquisition of Albion Drilling added £0.6m of lease
liabilities to the Group's balance sheet during the year. New hire purchase
contracts taken during the year are scheduled to expire in 2028.
The Group's asset backed lending facility, secured against the Group's
receivables and certain tangible assets was drawn by £3.0m as at 30 April
2025. Immediately following the sale of the Group's transport fleet in May
2025 £1.5m was repaid and the total facility was reduced from £11m to £8m.
There are no financial covenants associated with the facility which is due to
expire in September 2026.
The Group's lease liabilities include £5.1m of IFRS 16 property and vehicle
lease liabilities (2024: £4.9m). During the year, one of the Group's long
lease liabilities (and associated right of use assets) has been restated
following a detailed review of the lease terms. The lease liability associated
with this agreement has reduced by £1.3m and this has been processed as a
prior year adjustment.
Cash flow 2024
2025 £'000
£'000
Operating cash flows before working capital 12,461 14,676
Working capital movements (including provisions) (4,526) (4,430)
Net cash generated from continuing operating activities 7,935 10,246
Net cash absorbed in discontinued operating activities (2,169) (1,641)
Net cash generated from operating activities 5,766 8,605
Investing activities - continuing operations (4,626) (6,540)
Financing activities - continuing operations 472 (4,904)
Investing activities - discontinued operations (197) (44)
Financing activities - discontinued operations (33) -
Reclassification to held for sale (180) -
Net (decrease)/increase in cash 1,202 (2,883)
Operating cash flows of £7.9m have primarily been used to repay outstanding
debt, fund capital expenditure, acquisition consideration payments and
dividends. Dividend payments were £1.3m in the year.
Working capital cash flows exclude the impact of working capital introduced on
the acquisition of Albion Drilling.
The cashflow impact from the discontinued operation in Canada is an outflow of
£2.4m due to revenue growth resulting in working capital investment and
reported losses.
The Group paid the final remaining consideration of £2.1m for the acquisition
of Rock & Alluvium in November 2024 and paid consideration, net of cash
received, of £1.3m for the acquisition of Albion Drilling in October 2024.
Cash flows from investing activities includes £2.4m of disposal proceeds as
the Group rationalises its asset base with the sale of excess equipment and
property during the year.
Graeme Campbell
Chief Financial Officer
22 July 2025
Consolidated statement of comprehensive income
For the year ended 30 April 2025
2025 2024
Restated*
Underlying Non Statutory Underlying Non Statutory
Underlying Underlying
Items Items
£'000 £'000 £'000 £'000 £'000 £'000
Revenue 130,465 - 130,465 139,077 - 139,077
Cost of sales (90,045) - (90,045) (96,904) - (96,904)
Gross profit 40,420 - 40,420 42,173 - 42,173
Administrative expenses (37,733) - (37,733) (37,794) - (37,794)
Credit loss impairment credit/(charge) (33) - (33) 157 - 157
Other non-underlying items - (612) (612) - (561) (561)
Other operating income 2,833 - 2,833 2,365 894 3,259
Operating profit 5,487 (612) 4,875 6,901 333 7,234
Finance expense (413) - (413) (341) - (341)
Finance income 186 - 186 102 149 251
Profit before tax 5,260 (612) 4,648 6,662 482 7,144
Income tax expense (1,519) 31 (1,488) (1,856) 20 (1,836)
Profit for the year from continuing operations 3,741 (581) 3,160 4,806 502 5,308
Loss for the year from discontinued operations (1,317) - (1,317) (1,001) - (1,001)
Profit after tax 2,424 (581) 1,843 3,805 502 4,307
Earnings per share (pence)
Basic - continuing operations 3.5 2.9 4.5 5.0
Diluted - continuing operations 3.5 2.9 4.5 4.9
Basic 2.3 1.7 3.6 4.0
Diluted 2.2 1.7 3.5 4.0
Other comprehensive income 2025 2024
£'000 £'000
Items that may or may not be reclassified subsequently to profit or loss:
Foreign operations - foreign currency translation differences (112) (39)
Other comprehensive income for the year, net of tax (112) (39)
Total comprehensive income for the year attributable to shareholders of the 1,731 4,268
parent
*The comparatives have been restated due to the classification of a component
of the Group as a discontinued operation in the year.
Consolidated statement of financial position
As at 30 April 2025
2025 2024 2023
£'000 Restated* Restated*
£'000 £'000
Non-current assets
Property, plant and equipment 36,867 42,230 40,090
Intangible assets 4,554 4,432 3,713
Deferred tax 738 389 -
42,159 47,051 43,803
Current assets
Inventories 6,317 5,753 4,971
Assets held for sale 6,516 - -
Trade and other receivables 32,429 38,041 35,351
Cash and cash equivalents 7,204 6,002 8,885
52,466 49,796 49,207
Total assets 94,625 96,847 93,010
Current liabilities
Trade and other payables 20,277 22,145 22,927
Corporation tax payable 61 - -
Loans and borrowings 3,335 - 772
Deferred consideration - 2,120 790
Lease liabilities 1,973 2,024 1,551
Provisions 1,445 8,064 8,143
Liabilities held for sale 959 - -
28,050 34,353 34,183
Non-current liabilities
Loans and borrowing 1,109 - 386
Lease liabilities 4,770 3,356 3,526
Deferred tax 6,246 5,731 4,303
12,125 9,087 8,215
Total liabilities 40,175 43,440 42,398
Net assets 54,450 53,407 50,612
Equity
Share capital 2,164 2,135 2,133
Share premium 9,189 8,633 8,633
Other reserve 5,807 5,807 5,807
Retained earnings 37,290 36,832 34,039
Total equity 54,450 53,407 50,612
*Refer to note 8 for details of the prior year restatement
Consolidated statement of cash flows
For the year ended 30 April 2025
2025 2024
£'000 Restated*
£'000
Cash flows from continuing operating activities
Operating profit 4,875 7,233
Depreciation of property, plant and equipment 8,263 7,466
Amortisation of intangible assets 101 149
Profit on disposal of property, plant and equipment (835) (404)
Share based payment expense 57 232
Continuing operating cash flows before movement in working capital 12,461 14,676
Increase in inventories (323) (694)
Increase in trade and other receivables (809) (1,019)
Decrease in trade and other payables (2,630) (2,638)
Decrease in provisions (764) (79)
Cash generated from continuing operations 7,935 10,246
Income tax received - -
Net cash generated from continuing operating activities 7,935 10,246
Net cash absorbed in discontinued operating activities (2,169) (1,641)
Net cash generated from operating activities 5,766 8,605
Cash flows from investing activities
Purchases of property, plant and equipment (3,575) (5,456)
Proceeds from disposal of property, plant and equipment 2,426 1,877
Acquisition of subsidiary, net of cash acquired (3,417) (2,540)
Purchases of own shares into EBT (60) (421)
Net cash absorbed in continuing investing activities (4,626) (6,540)
Net cash absorbed in discontinued investing activities (197) (44)
Net cash absorbed in investing activities (4,823) (6,584)
Cash flows from financing activities
Proceeds from new loans and borrowings 4,577 -
Proceeds from issue of shares - 2
Repayment of loans and borrowings (132) (1,158)
Principal paid on lease liabilities (2,475) (2,379)
Interest paid on lease liabilities (317) (247)
Interest on borrowings (96) (93)
Interest receivable 186 251
Dividends paid (1,271) (1,280)
Net cash generated from / absorbed in continuing financing activities 472 (4,904)
Net cash absorbed in discontinued financing activities (33) -
Net cash generated from / absorbed in financing activities 439 (4,904)
Net movement in continuing operations' cash and cash equivalents 3,781 (1,198)
Net movement in discontinued operations' cash and cash equivalents (2,399) (1,685)
Net increase / (decrease) in cash and cash equivalents 1,382 (2,883)
Reclassification as held for sale (180) -
Cash and cash equivalents at beginning of year 6,002 8,885
Cash and cash equivalents at end of year 7,204 6,002
*Refer to note 8 for details of the prior year restatement
Consolidated statement of changes in equity
For the year ended 30 April 2025
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 34,039 50,612
Total comprehensive income* - - - 4,268 4,268
Issue of share capital 2 - - - 2
Purchase of own shares into EBT - - - (420) (420)
Dividends paid - - - (1,280) (1,280)
Share-based payments - - - 225 225
Total changes in equity 2 - - 2,793 2,795
Balance at 30 April 2024 2,135 8,633 5,807 36,832 53,407
Total comprehensive income - - - 1,731 1,731
Issue of share capital 29 556 - - 585
Purchase of own shares into EBT - - - (59) (59)
Dividends paid - - - (1,271) (1,271)
Share-based payments - - - 57 57
Total changes in equity 29 556 - 458 1,043
At 30 April 2025 2,164 9,189 5,807 37,290 54,450
*Refer to note 8 for details of the prior year restatement
1. Basis of preparation
The unaudited financial information set out below does not constitute the
Group's statutory accounts for the periods ended 30 April 2025 or 30 April
2024 but is derived from those unaudited accounts. Statutory accounts for 2024
have been delivered to the Registrar of Companies. The auditor has reported on
those accounts; their reports were (i) unqualified, (ii) did not include a
reference to any matters to which the auditor drew attention by way of
emphasis without qualifying their report and (iii) did not contain a statement
under section 498 (2) or (3) of the Companies Act 2006.
The audited statutory accounts for the year ended 30 April 2025 will be
delivered to the Registrar of Companies following the Company's Annual General
Meeting.
The Group financial statements have been prepared in accordance with UK
adopted International Accounting standards in conformity with the requirements
of the Companies Act 2006.The Group financial statements have been prepared on
the going concern basis and adopting the historical cost convention.
Adoption of new and revised standards
New standards, interpretations and amendments effective from 1 May 2024
During the year, the Group has adopted the following new and revised Standards
and Interpretations. Their adoption has not had any significant impact on the
accounts or disclosures in these financial statements:
· Amendments to IAS 1 - Classification of Liabilities as Current or
Non-current
· Amendment to IFRS 16 Leases - Lease liability in a Sale and
Leaseback
· Amendments to IAS 7 and IFRS 7 - Supplier Finance Arrangements
New standards, interpretations and amendments not yet effective
The Group has not early adopted the following new standards, amendments or
interpretations that have been issued but are not yet effective:
· IFRS S1 General Requirements for Disclosure of
Sustainability-related Financial Information
· IFRS S2 Climate-related Disclosures
· IFRS 18 Presentation and Disclosure in Financial Statements
· IFRS 19 Subsidiaries without Public Accountability: Disclosures
· Amendment to IAS 21 - Lack of Exchangeability
· Amendments to the Classification and Measurement of Financial
Instruments - Amendments to IFRS 9 and IFRS 7
2. Segment information
The Group evaluates segmental performance based on profit or loss from
operations calculated in accordance with IFRS but excluding non-recurring
items. 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.
Insurances and head office central services costs are allocated to the
segments based on levels of turnover. All turnover and operations are based in
the UK.
Operating segments - 30 April 2025
General Specialist Ground Head Total
Piling Piling and Rail Engineering Office £'000
£'000 £'000 Services £'000
£'000
Revenue 46,027 46,099 38,138 201 130,465
Other operating income - - - 2,833 2,833
Underlying operating profit/(loss) 628 5,291 861 (1,293) 5,487
Operating profit/(loss) 628 5,291 861 (1,905) 4,875
Finance expense - - - (413) (413)
Finance income - - - 186 186
Profit / (loss) before tax 628 5,291 861 (2,132) 4,648
Assets
Property, plant and equipment 13,127 12,736 5,921 5,083 36,867
Intangible assets 868 3,498 188 - 4,554
Inventories 2,185 896 3,168 68 6,317
Reportable segment assets 16,180 17,130 9,277 5,151 47,738
Trade and other receivables - - - 32,429 32,429
Assets held for sale - - - 6,516 6,516
Deferred tax - - - 738 738
Cash and cash equivalents - - - 7,204 7,204
Total assets 16,180 17,130 9,277 52,038 94,625
Liabilities
Liabilities held for sale - - - 959 959
Trade and other payables - - - 20,277 20,277
Corporation tax payable - - - 61 61
Provisions - - - 1,445 1,445
Loans and borrowings - - - 4,444 4,444
Lease liabilities - - - 6,743 6,743
Deferred tax - - - 6,246 6,246
Total liabilities - - - 40,175 40,175
Other information
Capital expenditure (including IFRS 16 leased assets) 4,350 2,638 523 629 8,140
Depreciation (including IFRS 16 leased assets) 2,662 3,104 1,643 1,100 8,509
Operating segments - 30 April 2024
Restated
General Specialist Ground Head Total
Piling Piling and Rail Engineering Office £'000
£'000 £'000 Services £'000
£'000
Revenue 56,686 43,469 38,317 605 139,077
Other operating income - - - 3,259 3,259
Underlying operating profit/(loss) 5,212 2,588 918 (1,818) 6,900
Operating profit/(loss) 5,212 2,588 918 (1,485) 7,233
Finance expense - - - (339) (339)
Finance income - - - 251 251
Profit / (loss) before tax 5,212 2,588 918 (1,573) 7,145
Assets
Property, plant and equipment 12,444 13,388 7,049 9,350 42,230
Intangible assets 871 3,362 199 - 4,432
Inventories 2,304 864 2,539 46 5,753
Reportable segment assets 15,619 17,613 9,787 9,396 52,415
Deferred tax - - - 389 389
Trade and other receivables - - - 38,041 38,041
Cash and cash equivalents - - - 6,002 6,002
Total assets 15,619 17,613 9,787 53,829 96,847
Liabilities
Trade and other payables - - - 22,145 22,145
Deferred consideration - - - 2,120 2,120
Lease liabilities - - - 5,380 5,380
Provisions - - - 8,064 8,064
Deferred tax - - - 5,731 5,731
Total liabilities - - - 43,440 43,440
Other information
Capital expenditure (including IFRS 16 leased assets) 1,144 1,764 704 2,844 6,456
Depreciation (including IFRS 16 leased assets) 2,063 2,828 1,640 935 7,466
The Group had no customers with revenue greater than 10% of Group revenue in
the current period (2024: none).
3. Revenue from contracts with customers
Disaggregation of revenue - 30 April 2025
End market General Specialist Ground Head Total
Piling Piling and Rail Engineering Office £'000
£'000 £'000 Services £'000
£'000
Residential 18,061 5,321 28,618 - 52,000
Infrastructure 12,055 35,169 7,012 - 54,236
Regional construction 15,655 5,598 2,508 - 23,761
Other 256 11 - 201 468
Total 46,027 46,099 38,138 201 130,465
Head office revenue relates to revenue generated from the supply of training
services.
Disaggregation of revenue - 30 April 2024
Restated
End market General Specialist Ground Head Total
Piling Piling and Rail Engineering Office £'000
£'000 £'000 Services £'000
£'000
Residential 22,937 4,921 29,339 - 57,197
Infrastructure 15,737 32,751 6,332 - 54,820
Regional construction 17,761 5,797 2,644 - 26,202
Other 251 - 2 605 858
Total 56,686 43,469 38,317 605 139,077
4. Discontinued operations
At 30 April 2025 Van Elle Canada Inc. was classified as a disposal group held
for sale and as a discontinued operation. The results of Van Elle Canada Inc.
are presented below:
2025 2024
£'000 £'000
Revenue 3,497 402
Expenses (5,163) (1,792)
Loss before tax (1,666) (1,390)
Income tax (expense) / benefit 349 389
Loss for the year from discontinued operations (1,317) (1,001)
5. Income tax expense
2025 2024 Restated
£'000 £'000
Current tax credit
Current tax on profit/loss for the year 1,199 799
Adjustment for over-provision in the prior period 116 38
Total current tax credit 1,315 837
Deferred tax expense
Origination and reversal of temporary differences 141 871
Adjustment for over-provision in the prior period 32 128
Total deferred tax expense 173 999
Income tax expense 1,488 1,836
The reasons for the difference between the actual tax charge for the year and
the standard rate of corporation tax in the United Kingdom applied to
profit/(loss) for the year are as follows:
2025 2024
£'000 £'000
Profit / (loss) before income taxes 4,648 7,145
Tax using the standard corporation tax rate of 19.5% (2022: 19%) 1,162 1,786
Adjustments for over-provision in previous periods 148 166
Expenses not deductible for tax purposes 156 69
Income not taxable - (313)
Non-qualifying depreciation 6 128
Deferred tax assets not recognised 16 -
Total income tax expense 1,488 1,836
During the year ended 30 April 2025, corporation tax has been calculated at
25% of estimated assessable profit for the year (2024: 25%).
Deferred tax balances as at 30 April 2025 are measured at the current
corporation tax rate of 25%.
6. Earnings per share
The calculation of basic and diluted earnings per share is based on the
following data:
2025 2024
'000 '000
Basic weighted average number of shares 107,184 106,703
Dilutive potential ordinary shares from share options 1,107 1,209
Diluted weighted average number of shares 108,291 107,912
2025 2024
Profit / (Loss) EPS DEPS Profit / (Loss) EPS DEPS
£'000
£'000
Pence
Pence
Pence
Pence
Statutory profit from continued operations 3,160 2.9 2.9 5,308 5.0 4.9
Statutory loss from discontinued operations (1,317) (1,001) - -
Statutory profit for the year 1,843 1.7 1.7 4,307 4.0 4.0
Underlying profit from continued operations 3,741 3.5 3.5 4,806 4.5 4.5
Underlying loss from discontinued continued operations (1,317) - - (1,001) - -
Underlying profit for the year 2,424 2.3 2.2 3,805 3.6 3.5
The calculation of basic earnings per share is based on the earnings
attributable to ordinary shareholders and on 107,184,400 ordinary shares
(2024: 106,703,045), being the weighted average number of ordinary shares in
issue during the period.
The dilutive shares of 1,107,000 (2024: 1,209,000) represent share options
exercisable under the Group's LTIP scheme that have vested and are yet to be
exercised. Share options exercisable under the Group's CSOP scheme are
underwater and therefore have not been included in dilutive shares.
7. Analysis of cash and cash equivalents and reconciliation to net debt
2024 Cash Non-cash 2025
Restated flows flows £'000
£'000 £'000 £'000
Cash at bank 5,964 1,382 (180) 7,166
Cash in hand 38 - - 38
Cash and cash equivalents 6,002 1,382 (180) 7,204
Loans and borrowings - (4,348) (96) (4,444)
Lease liabilities (5,379) 2,824 (4,188) (6,743)
Net funds / (debt) including IFRS 16 property and vehicle lease liabilities 623 (142) (4,464) (3,983)
Cash flows in respect of lease liabilities include interest paid on leases for
continuing operations of £317,000 (2024: £246,000) and discontinued
operations of £4,000 (2024: £Nil) totalling £321,000 (2024: £246,000).
Cash flows also include continuing operations principal paid of £2,475,000
(2024: £3,537,000) and discontinued operations principal paid of £28,000
(2024: £Nil) totalling £2,503,000 (2024: £3,537,000).
Non-cash flows in respect of lease liabilities include the purchase of
£3,672,000 (2024: £1,044,000) of fixed assets on long-term hire, interest
expense of £321,000 (2024: £246,000), business combinations of £603,000
(2024: £1,639,000) less liabilities reclassified as held for sale of
£408,000 (2024: £Nil).
8. Prior period restatement
During the current financial year, a detailed review of terms of one of the
Group's long lease agreements was undertaken resulting in the restatement of
the associated IFRS 16 asset and liability.
A restatement of the FY2024 profit and loss, cashflow statement and balance
sheet as at 30 April 2023 and 30 April 2024 has been made.
The total impact on the FY2024 profit and loss is a £93,000 increase in
profit after tax, being a reduction in administrative costs of £37,000 and
finance expenses of £90,000, with an increased tax charge of £34,000.
The impact on net assets as at 30 April 2024 was an increase of £682,000. The
impact on net assets as at 30 April 2023 was an increase of £580,000.
The impact on the FY2024 cash flow statement is a reduction in the net cash
generated from operating activities of £106,000, a reduction in principal
paid on lease liabilities of £16,000 and a reduction in interest paid on
lease liabilities of £90,000. The net impact on cash in FY2024 is nil. A
restatement of the cash flow statement is required due to the original cash
flow presentation reflecting the accounting entries for the long lease rather
than the cash flows.
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