REG - Van Elle Holdings - Trading Update

Van Elle HoldingsAnnouncement

13/03/2025 07:15

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RNS Number : 5310A  Van Elle Holdings PLC  13 March 2025

 

Van Elle Holdings plc

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

 

Trading update

 

Van Elle Holdings plc, the UK's largest ground engineering contractor,
announces the following trading update for the year ending 30 April 2025.

 

Update on current trading

In its interim results on 29 January 2025, the Company announced that market
conditions had proved challenging. Despite benefitting from a strong order
book, the trading environment and volumes remained supressed throughout
January and February.

 

The Group has experienced widespread project delays, including the ongoing
impact of the well-publicised delays to Building Safety Act approvals. These
delays have primarily impacted trading for Rock & Alluvium, which is
focused on taller residential schemes in London and the Southeast. There are
over 40 projects currently in the approvals process, the majority of which are
now expected to commence in FY26 and will result in a FY25 performance for Van
Elle's UK operations slightly below the Board's expectations.

 

Van Elle Canada Inc. has experienced further delays as a strategic supply
partner to the major infrastructure upgrade programme for the Toronto rail
network. As a consequence of these delays, the division's trading performance
will now be weaker than initially anticipated. Van Elle has developed a solid
track record locally in Canada and has secured several key frameworks
throughout FY24 and FY25 which have created several attractive medium-term
opportunities. With the near-term uncertainty around the timing of key
investment programmes, the Board is reviewing its strategic options with
respect to its operations in Canada.

 

Consequently, as a result of the aggregate impact of the Rock & Alluvium
and Canada trading performance, the Board now expects underlying profit before
tax for the second half of FY25 to be similar to the first half.

 

Outlook

In light of the trading pressures the Group is facing, there is an acute focus
on careful working capital management and aligning its cost base to drive
operating efficiencies. Additionally, the Group has disposed of certain
non-core assets in support of a robust balance sheet and its objective of
improving ROCE.

 

Building on the increase in the Group's order book announced in the interim
results, several large projects have recently been secured in the General
Piling division, which will be delivered in early FY26. In addition, scheduled
workloads across March and April represent an increase in volumes, providing
encouraging momentum into the new financial year.

 

With an expectation that the housing market will progressively improve
throughout calendar year 2025, further progress in the energy and water
markets, combined with the Government's commitment to accelerate
infrastructure spend and address the backlog of Building Safety Act approvals,
the Board remains optimistic for the Group's prospects for FY26 whilst
recognising that the pace of market recovery may be slower than previously
expected.

 

 

Certain information contained in this announcement would have constituted
inside information (as defined by Article 7 of Regulation (EU) No 596/2014),
as it forms part of domestic law by virtue of the European Union (Withdrawal)
Act 2018) ("MAR") prior to its release as part of this announcement and is
disclosed in accordance with the Company's obligations under Article 17 of
those Regulations.

 

 

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.

 

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