REG - Van Elle Holdings - Interim Results, Analyst Briefing & Investor Pres
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RNS Number : 2692Q Van Elle Holdings PLC 26 January 2026
Van Elle Holdings plc
('Van Elle', the 'Company' or the 'Group')
Interim Results for the six months ended 31 October 2025
Analyst Briefing and Investor Presentation
Market conditions remained challenging in H1, but the Group remains in a very
strong position to benefit from expected market improvements in the energy,
water and residential sectors
Van Elle Holdings plc, the UK's largest ground engineering contractor,
announces its unaudited interim results for the six months ended 31 October
2025 (the 'Period').
Note: Van Elle Canada Inc. is 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. As previously announced, the disposal of Van Elle Canada Inc.
completed on 19 December 2025.
All KPI's are presented on a continuing basis 6 months 6 months
£m ended ended
31 October 2025 31 October 2024
Restated(3)
Revenue 73.4 63.4
Underlying EBITDA (1) 5.7 6.1
Underlying operating profit 2.0 2.2
Underlying operating profit margin 2.8% 3.4%
Operating profit 1.8 2.0
Underlying profit before taxation 1.9 2.2
Profit before taxation 1.7 2.0
Underlying basic earnings per share (p) 1.4 1.5
Basic earnings per share (p) 1.2 1.4
Net funds (excluding IFRS 16 property and vehicle lease liabilities) (2) 2.8 3.1
Net (debt)/ funds (2.1) (2.1)
Underlying return on capital employed 10.4% 11.4%
Interim dividend per share (p) 0.4 0.4
(1) Underlying EBITDA is defined as earnings before interest, tax,
depreciation and amortisation.
(2) IFRS 16 property and vehicle lease liabilities as at 31 October 2025 were
£4.9m (31 October 2024: £5.1m).
(3) Results for the 6 months ended 31 October 2024 are restated as detailed in
notes 8 and 10. ( )
Period highlights
· Resilient performance delivered against a backdrop of macroeconomic
uncertainty and continued market headwinds in end markets.
· Revenue from continuing operations of £73.4m (H1 FY2025: £63.4m),
representing a 16% year-on-year increase driven by General Piling and
Specialist Piling & Rail.
· Underlying profit before tax for continuing operations of £1.9m
(H1 FY2025: £2.2m).
· Continued strong performance in Specialist Piling and Rail
segment, with strengthened position in the energy and water sectors, including
the completion of the Group's 150(th) high-voltage substation project.
· Underlying operating profit margin of 2.8% driven by product mix
which is expected to improve in the second half with more higher margin,
complex projects mobilising.
· Performance in General Piling and Ground Engineering Services
reflects challenging market conditions and competitive landscape.
· Impact of the Building Safety Act approval delays continued to
impact revenues in the high-rise residential market, delaying numerous
projects and resulting in further losses in H1 in the Group's London
operations.
· Disposal of Van Elle Canada in December 2025.
· Net funds as at 31 October 2025 (excluding IFRS 16 property and
vehicle lease liabilities) of £2.8m (31 October 2024: £3.1m, 30 April 2025:
£1.1m).
· Refinancing underway with £10m asset lending facility in place.
· Interim dividend unchanged at 0.4 pence per share.
Outlook
· Order book has increased 8% to £44.9m as at 31 October 2025 (31
October 2024: £41.6m) excluding framework agreements and preferred bidder
positions.
· Market conditions remain challenging, but the Group is in a strong
position to benefit from anticipated improvements across several of its core
markets.
· Significant potential in the energy sector, with visibility of at
least £40m expected annual revenue through long term frameworks from FY28.
· The residential sector is expected to recover in the medium term,
supported by the Government's commitments to increase housing supply. Recent
measures aimed at addressing delays associated with the Building Safety Act
are forecast to stabilise performance in the Group's London operations from
Q4. The Group has seen a four-fold increase in Gateway 2 approvals in Q3
compared to Q2.
· Group is well positioned to benefit from the increasing activity
levels in the rail and water sectors, underpinned by the substantial committed
spends for the CP7 and AMP8 regulatory cycles respectively.
· The Board remains confident in achieving market expectations for
the full year(1).
(1) Company compiled analyst consensus for FY2026 underlying profit before tax
is £3.0m.
Mark Cutler, Chief Executive, commented:
"We are pleased with the progress made during the first half of the year, and
despite the challenges faced in the wider industry, the Group is starting to
see signs of recovery in its core markets. With a strategic focus on
increasing exposure to energy and water, alongside early signs of improving
housing and residential market confidence, the Group is well positioned to
deliver strong growth over the medium term.
"The disposal of our Canadian operations in December allows us to focus on the
significant prospects in the UK with clear capital allocation priorities,
supported by a growing number of strategic customer partnerships and long-term
frameworks."
Analyst Briefing: 10.00am on Monday 26 January 2026
An online briefing for Analysts will be held at 10.00am today. 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 Monday 26 January 2026
Mark Cutler, Chief Executive Officer, and Graeme Campbell, Chief Financial
Officer, will hold a presentation to review the results and outlook at 3.30pm
today. 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.
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 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 corporate broker) Tel: 020 7418 8900
Ed Allsopp
Charlotte Sutcliffe
Tom Graham
Dowgate Capital Limited (Joint Broker) Tel: 020 3903 7715
James Serjeant
Dan Ingram
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.
Van Elle Holdings plc - Interim Report to 31 October 2025
Results overview
The Group's unaudited results for continuing operations in the Period are in
line with the Board's expectations and reflect a resilient operational
performance despite the challenging market conditions. Revenue for continuing
operations in the Period increased by 16% to £73.4m (HY2025: £63.4m,
restated to exclude Van Elle Canada Inc.), primarily driven through improving
volumes within General Piling, and benefitting from Albion Drilling which was
acquired in October 2024.
In the Infrastructure sector, the Group has strengthened its position in
energy and water sectors, where the medium-term opportunity is significant. In
Energy, the Group is progressing ground investigation, design and construction
workstreams on two major transmission schemes for Wood Group, and initial work
has commenced on its first transmission projects for M-Group and National
Grid. It also recorded the completion of its 150th high voltage substation
project, the majority with its modular ScrewFast system. In Water, Strata
Geotechnics has secured a place on United Utilities' AMP8 ground investigation
framework, and several wastewater treatment schemes are underway with
Galliford Try, Kier and Costain.
Rail sector activity was below expectations because of lower spend during the
early stages of CP7 although supported by our strong position on the
TransPennine Route Upgrade project.
The Residential market remained subdued in the Period. Continued economic
uncertainty and the late Budget impacted housebuilding volumes, particularly
in the private housing market. In the high-rise market, the impact of the
Building Safety Act has caused significant delays to the commencement of
numerous high-rise schemes, particularly in London. Recent commitments to
clear the gateway 2 backlog and introduce staged applications are very
encouraging, and the Group has seen a four-fold increase in approvals in Q3
compared to Q2.
The Regional Construction market continues to be very competitive.
Notwithstanding the softer market conditions, sector revenue increased
primarily due to the large Sheffield Forgemasters project, which is currently
in progress.
Van Elle Canada Inc. is classified as a discontinued operation and is excluded
from the Group's financial results on a continuing basis. As previously
announced, the disposal of Van Elle Canada Inc. completed on 19 December 2025.
Under new ownership, Van Elle Canada will have access to greater local
resources to pursue the considerable opportunities identified in Ontario and
beyond, and to build on the progress made since Van Elle entered the Canadian
market in 2023. Van Elle's rail division will continue to provide advisory
services to Van Elle Canada under a consultancy agreement.
Net funds as at 31 October 2025 (excluding IFRS 16 property and vehicle lease
liabilities) increased from the year end to £2.8m (30 April 2025: £1.1m).
Working capital decreased by £1.5m in the Period, supported by the receipt of
£1.2m of delayed R&D tax credits. Purchases of Property, Plant and
Equipment was £5.5m, primarily representing investment in the rig fleet to
support future growth, which was offset by asset disposals of £3.2m, largely
attributable to the disposal of Van Elle's in-house HGV fleet in May 2025.
The Group continues to maintain a strong balance sheet supported by a
significant asset base and a healthy cash balance. The funding facility has
been renegotiated, and the Group now has a £10m asset lending facility with
Lloyds Banking Group, available against new asset purchases, of which £7.6m
is undrawn.
The order book was £44.9m as at 31 October 2025 (31 October 2024: £41.6m)
providing good visibility through to the year end and into FY2027.
Market overview
The Group operates in three market sectors:
· Residential constituted 32% of Group revenues in the Period (44%
in H1 FY2025). Sector revenue decreased by 15% to £23.8m (H1 FY2025:
£28.1m). Divisional teams deliver integrated piling and foundation systems
for national and regional housebuilders, retirement homes, and multi-storey
residential properties.
In new build residential housing, volumes remained subdued in the Period,
where continued economic uncertainty impacted housebuilders activity levels,
particularly in the private housing market. Whilst some of this impact is
mitigated by the Group's balanced exposure to affordable and partnership
housing customers.
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 high-rise schemes, particularly in London. Recent
commitments to clear the gateway 2 backlog and introduce staged applications
are very encouraging, and the Group has seen a four-fold increase in approvals
in Q3 compared to Q2.
Housebuilding volumes are currently well below the Government's targets.
However, the outlook remains very strong in the UK, supported by the
Government's pledge to build 1.5 million new homes in the current parliament
and to speed up the planning process. The benefits of the Group's offsite
manufactured Smartfoot system are expected to support faster build times with
less resources during a widely publicised skills shortage and to respond
quickly as the market improves.
· Infrastructure constituted 44% of Group revenues in the Period
(39% in H1 FY2025). Sector revenue increased by 31% to £32.0m (H1 FY2025:
£24.4m). The sector includes specialist ground engineering services to the
rail, highways, coastal and flooding, energy and utility sectors.
The Group has strengthened its position in the UK's energy and water sectors,
where the medium-term opportunity is significant.
Forecasted growth in UK electricity demand, energy security considerations and
grid connectivity to green energy generation is driving substantial investment
in the energy sector. The Group is uniquely positioned to provide an
integrated offering to customers, including ground investigation, design,
manufacture, civils and piling solutions for substations and new and upgraded
transmission lines. Long term, high value frameworks are being established and
ground investigation, design and construction workstreams are already
progressing on several major schemes in Scotland for Wood and M-Group.
In the water sector, following years of under investment, the current
investment cycle (AMP8) is forecast to deliver more than double the investment
from the previous AMP7 cycle. Water company spend of £104bn is expected in
AMP8 and a further increase expected in AMP9 (AMP7: £54bn). The Group is well
positioned to support Tier 1 contractors across a broad range of projects in
the sector.
Rail revenues remained subdued in the Period with lower than expected activity
levels during the early stages of CP7. Workload was supported by our strong
position on the TransPennine Route Upgrade project.
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.
The Group disposed of its Canadian Rail subsidiary in December 2025, which had
been impacted by project delays since inception. Van Elle will continue to
provide specialised technical support to the new owner.
· Regional Construction constituted 24% of Group revenues (17% in
H1 FY2025). Sector revenue increased by 65% to £17.3m (H1 FY2025: £10.5m).
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 continues to be very competitive.
Notwithstanding the softer market conditions, sector revenue increased
primarily due to the large Sheffield Forgemasters project, which is currently
in progress.
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 Group structure has remained consistent and is reported
in three segments:
· General Piling: open site; larger projects; key techniques being
large diameter rotary, CFA piling and precast driven piling.
· 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, drill and blast and specialised drilling and
nailing (Albion).
· Ground Engineering Services: piling solutions for housebuilders,
precast concrete modular foundations (Smartfoot); ground investigation and
geotechnical services (Strata Geotechnics).
General Piling
Revenue increased by 25% in the Period to £28.9m (H1 FY2025: £23.0m),
representing 39% of Group revenues (36% in H1 FY2025).
The General Piling division operates across all the Group's three market
sectors. The division continues to be impacted by weak market conditions
resulting in highly price sensitive opportunities.
Residential sector revenues decreased further compared to a relatively low
base in the previous year. This primarily reflects the continued delays to
Building Safety Act approvals for high-rise residential buildings,
particularly in London. Recent announcements by the government to put
processes in place, including staged applications, to speed up decisions on
new build schemes, is encouraging.
Regional Construction sector revenues increased significantly compared to the
previous year, mainly due to the largest industrial project for several years
currently being delivered at Forgemasters in Sheffield.
Despite the higher revenues, margin pressure has resulted in an operating loss
of £0.1m for the Period (H1 FY2025: £0.5m profit).
Specialist Piling and Rail
Revenue increased by 21% in the Period to £25.9m (H1 FY2025: £21.4m),
representing 35% of Group revenues (34% in H1 FY2025). Revenue from Albion
Drilling, acquired by the Group on 28 October 2024, is reported in the
Specialist Piling and Rail division.
Specialist Piling activity levels decreased compared to the previous year,
reflecting a strong comparative period. Market conditions remained fairly
stable, with strong contract margins delivered due to the highly skilled
nature of specialist site works. The division's medium-term outlook in the
infrastructure sector remains very positive, with significant growth
opportunities in the high-voltage power sector supporting the development of
the UK's electricity transmission networks, and increased activity in the
water sector under the AMP8 framework.
Rail revenues increased, with activity levels in the previous year being
subdued as the sector transitioned from CP6 into CP7. Revenue has recovered
from this low base, supported by our operations on the TransPennine Route
Upgrade project, however CP7 activity levels have not yet increased to
previously forecast levels that would allow the division to generate strong
profitability.
Albion Drilling was acquired in October 2024 to provide additional capacity
and specialist capability in Scotland, where many initial energy projects will
commence. Revenues from Albion are reported in the Specialist Piling and Rail
segment and remained broadly flat compared to the previous year.
Operating profit for the division increased to £2.7m (H1 FY2025: £2.1m).
Ground Engineering Services
Revenue decreased by 2% in the Period to £18.4m (H1 FY2025: £18.7m),
representing 25% of Group revenues (30% in H1 FY2025).
Ground Engineering consists of the 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 compared to the previous year. New build
residential housing volumes continued to be subdued, where continued economic
uncertainty impacted housebuilders activity levels. 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.
Whilst housebuilding volumes are currently below the government's targets, the
sector outlook remains very strong, supported by the Government's pledge to
build 1.5 million new homes in the current parliament and to speed up the
planning process.
Strata revenues increased with strong progress being achieved in the energy
sector in Scotland. Ground investigation is progressing on several major
energy transmission projects in Scotland for our strategic customers. There
remains a very strong pipeline of opportunities over the next three years.
Operating profit for the segment increased to £0.5m (H1 FY2025: £0.3m).
Strategy
Progress towards the Group's strategic financial objectives has been impacted
by ongoing challenging market conditions in many of its end markets. However,
the Group is well-positioned for the expected improvement in market
conditions, particularly with significant demand expected in the energy and
water sectors, and an anticipated recovery in residential housing.
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 concrete 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. We have commenced mapping our scope 3 emissions
to build on our carbon emissions reporting.
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.
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.
The Board has declared an interim dividend of 0.4 pence per share, which is
payable on 13 March 2026 to shareholders on the share register as at 20
February 2026. The shares will be marked ex-dividend on 19 February 2026.
Current trading and outlook
Market conditions have remained challenging throughout the first half of the
financial year, but the Group remains in a very strong position to benefit
from expected market improvements, particularly in the energy, water and
residential sectors.
The Group continues to focus on the energy sector as a key growth driver,
where there are committed levels of investment and an expected national
shortage of skills to deliver planned works in the UK. We are very well
positioned to maximise the opportunity with a large skilled workforce and a
broad range of integrated capability to deliver on all ground engineering
requirements. Workload is underway on ground investigation and design
projects, which are expected to lead to significant piling projects in future
periods, with visibility of at least £40m expected annual revenue through
long term frameworks in the energy sector from FY28.
Growth in the rail and water sectors is also anticipated, as activity levels
are expected to accelerate during the CP7 and AMP8 investment cycles.
The medium-term outlook for the residential sector is very strong, 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 where there have been significant
delays to the commencement of numerous high-rise schemes, particularly in
London.
In Regional Construction we are seeing an increased level of confidence for
industrial schemes including logistics, data centres, prisons, schools and
hospitals.
The Board continues to expect results in line with market expectations for the
current financial year.
Mark Cutler
Chief Executive Officer
26 January 2026
Condensed consolidated statement of comprehensive income
6 months to 31 Oct 2025 (unaudited) 6 months to 31 Oct 2024 (unaudited) 12 months to 30 Apr 2025 (audited)
£'000 (restated) £'000
Note £'000
Revenue 2,3 73,370 63,359 130,465
Cost of sales (53,708) (43,806) (90,045)
Gross profit 19,662 19,553 40,420
Administrative expenses (18,833) (18,909) (38,345)
Credit loss impairment charge - (68) (33)
Other operating income 1,000 1,455 2,833
Operating profit 1,829 2,031 4,875
Operating profit before non-underlying items 2,045 2,171 5,487
Non-underlying items (216) (140) (612)
Operating profit 1,829 2,031 4,875
Finance expense (218) (102) (413)
Finance income 59 100 186
Profit before tax 1,670 2,029 4,648
Income tax credit/(expense) (356) (524) (1,488)
Profit for the period from continuing operations 1,314 1,505 3,160
Loss for the period from discontinued operations (1,310) (97) (1,317)
Profit for the period 4 1,408 1,843
Earnings per share (pence)
Basic 6 0.0 1.3 1.7
Diluted 6 0.0 1.3 1.7
Basic - Continuing 6 1.2 1.4 2.9
Diluted - Continuing 6 1.2 1.4 2.9
Other comprehensive income 6 months to 31 Oct 2025 (unaudited) 6 months to 31 Oct 2024 (unaudited) 12 months to 30 Apr 2025 (audited)
(restated)
Note £'000 £'000 £'000
Items that may or may not be reclassified subsequently to profit or loss:
Foreign operations - foreign currency translation differences (11) (62) (112)
Other comprehensive income for the period, net of tax (11) (62) (112)
Total comprehensive income for the period attributable to shareholders of the (7) 1,346 1,731
parent
Condensed consolidated statement of financial position
As at As at As at
31 Oct 2025 (unaudited) 31 Oct 2024 (unaudited) 30 Apr 2025 (audited)
£'000 (restated) £'000
£'000
Non-current assets
Property, plant and equipment 38,821 44,518 36,867
Intangible assets 4,554 4,981 4,554
Deferred tax 738 370 738
44,113 49,869 42,159
Current assets
Inventories 6,990 6,192 6,317
Assets held for sale 3,158 - 6,516
Trade and other receivables 33,378 33,168 32,429
Cash and cash equivalents 6,736 3,814 7,204
50,262 43,174 52,466
Total assets 94,375 93,043 94,625
Current liabilities
Trade and other payables 23,265 21,310 20,277
Corporation tax - - 61
Loans and borrowings 1,894 - 3,335
Deferred consideration - 2,671 -
Lease liabilities 1,883 2,061 1,973
Provisions 1,450 1,903 1,445
Liabilities held for sale 747 - 959
29,239 27,945 28,050
Non-current liabilities
Loans and borrowings 854 - 1,109
Deferred consideration - 281 -
Lease liabilities 4,214 3,819 4,770
Deferred tax 6,297 6,426 6,246
11,365 10,526 12,125
Total liabilities 40,604 38,471 40,175
Net assets 53,771 54,572 54,450
Equity
Share capital 2,164 2,164 2,164
Share premium 9,189 9,189 9,189
Other reserve 5,807 5,807 5,807
Investment in own shares (479) (420) (479)
Retained earnings 37,090 37,832 37,769
Total equity 53,771 54,572 54,450
Condensed consolidated statement of cash flows
6 months to 31 Oct 6 months 12 months
2025 to 31 Oct 2024 to 30 Apr 2025 (audited)
(unaudited) (unaudited) £'000
£'000 (restated)
£'000
Cash flows from operating activities
Operating profit 1,829 2,031 4,875
Depreciation of property, plant and equipment 3,694 3,951 8,263
Amortisation of intangible assets - 74 101
Profit on disposal of property, plant and equipment (514) (377) (835)
Share-based payment expense 184 123 57
Operating cash flows before movement in working capital 5,193 5,802 12,461
(Increase)/decrease in inventories (673) (152) (323)
(Increase)/decrease in trade and other receivables (825) 240 (809)
Decrease/(increase) in trade and other payables 2,988 (1,460) (2,630)
Increase/(decrease) in provisions 5 (211) (764)
Cash generated from continuing operations 6,688 4,219 7,935
Income tax (paid)/received (61) - -
Net cash generated from continuing operating activities 6,627 4,219 7,935
Net cash generated from discontinued operating activities (546) (854) (2,169)
Net cash generated from operating activities 6,081 3,365 5,766
Cash flows from investing activities
Purchases of property, plant and equipment (5,505) (2,528) (3,575)
Disposal of property, plant and equipment 3,194 576 2,426
Purchase of subsidiary, net of cash acquired (270) (1,297) (3,417)
Purchase of own shares into EBT - - (60)
Net cash absorbed in continuing investing activities (2,581) (3,249) (4,626)
Net cash absorbed in discontinued investing activities - (242) (197)
Net cash absorbed in investing activities (2,581) (3,491) (4,823)
Cash flows from financing activities
Proceeds from new loans and borrowings - - 4,577
Repayment of bank borrowings (1,580) - (132)
Principal paid on lease liabilities (1,307) (1,207) (2,475)
Interest paid on lease liabilities (204) (102) (317)
Interest paid on loans and borrowings (14) - (96)
Interest received 59 100 186
Dividends paid (856) (853) (1,271)
Net cash absorbed in continuing financing activities (3,902) (2,062) 472
Net cash absorbed in discontinuing financing activities (66) - (33)
Net cash absorbed in financing activities (3,968) (2,062) 439
Net increase/(decrease) in continuing cash and cash equivalents 144 (1,092) 3,781
Net increase/(decrease) in discontinuing cash and cash equivalents (612) (1,096) (2,399)
Net increase/(decrease) in cash and cash equivalents (468) (2,188) 1,382
Reclassification to held for sale - - (180)
Cash and cash equivalents at beginning of period 7,204 6,002 6,002
Cash and cash equivalents at end of period 6,736 3,814 7,204
Condensed consolidated statement of changes in equity
Share Share Other Total
Capital premium reserve Investment in own shares Retained equity
£'000 £'000 £'000 £'000 earnings £'000
£'000
Balance at 2,135 8,633 5,807 (420) 37,252 53,407
30 April 2024
(audited) (restated)
Total comprehensive income - - - - 1,346 1,346
Issue of share capital 29 556 - - - 585
Share-based payment expense - - - - 123 123
Dividends paid - - - - (854) (854)
Deferred tax charge on share-based payments - - - - (35) (35)
Balance at 2,164 9,189 5,807 (420) 37,832 54,572
31 October 2024
(unaudited)
(restated)
Total comprehensive income - - - - 385 385
Purchase of own shares into EBT - - - (59) - (59)
Share-based payment expense - - - - (66) (66)
Dividends paid - - - - (417) (417)
Deferred tax charge on share-based payments - - - - 35 35
Balance at 2,164 9,189 5,807 (479) 37,769 54,450
30 April 2025
(audited)
Total comprehensive income - - - - (7) (7)
Share-based payment expense - - - - 184 184
Dividends paid - - - - (856) (856)
Balance at 2,164 9,189 5,807 (479) 37,090 53,771
31 October 2025
(unaudited)
Notes to the condensed consolidated interim financial statements
For the six months ended 31 October 2025
1. Basis of preparation
The unaudited interim consolidated statement of Van Elle Holdings plc is for
the six months ended 31 October 2025 and does not comprise statutory accounts
within the meaning of section 435 of the Companies Act 2006. These condensed
consolidated financial statements have been prepared in compliance with the
recognition and measurement requirement of International Accounting Standards
in conformity with the requirements of the Companies Act 2006. They do not
include all disclosures that would otherwise be required in a complete set of
financial statements and should be read in conjunction with the Group's annual
report. The unaudited interim consolidated statement has been prepared in
accordance with the accounting policies that are expected to be applied in the
report and accounts for the year ending 30 April 2026.
The comparative figures for the year ended 30 April 2025 do not constitute
statutory accounts within the meaning of section 435 of the Companies Act
2006, but they have been derived from the audited financial statements for
that year, which have been filed with the Registrar of Companies. The report
of the auditors was unqualified and did not contain statements under section
498 (2) or (3) of the Companies Act 2006 nor a reference to any matters which
the auditor drew attention by way of emphasis of matter without qualifying
their report.
Going Concern
As part of the going concern assessment for the year ended 30 April 2025
detailed forecasts were prepared. These forecasts demonstrated sufficient cash
flow and headroom across the period to 31 December 2026. Reverse stress
testing was also carried out and the scenarios in which cash resources were
exhausted and further debt facilities were required were considered remote.
Despite challenging market conditions during the 6-month period, net funds
(excluding IFRS 16 property and vehicle lease liabilities) has increased from
£1.1m at 30 April 2025 to £2.8m at 31 October 2025. During the 6-month
period the business has continued to invest in it's rig fleet and has
generated cash through the disposal of its in-house HGV fleet. Of the £3m
drawn on the Group's asset backed lending facility as at 30 April 2025, £1.5m
was repaid in the period and the remaining £1.5m outstanding was repaid
shortly after the period end. Since the period, the Group's financing
facilities have been renegotiated and the Group now has a £10m asset lending
facility with Lloyds Banking Group, to be drawn against new asset purchases.
Total hire purchase finance at the end of the period was £2.4m, with a
further £2.5m of hire purchase financing taken out with Lloyds since the
period end.
As part of the interim going concern assessment, forecasts for the 12 months
ending January 2027 have been prepared which demonstrate that the Group is
able to operate within its existing facilities and meet obligations as they
fall due. The Board remains confident in achieving market expectations for the
current financial year and the Group's order book has also grown in the period
since 30 April 2025.
On this basis the Board consider the Group to have adequate resources to
continue its operations for the foreseeable future. Accordingly, the Board
continue to adopt the going concern basis in preparing the interim financial
statements.
Accounting Policies
The accounting policies adopted in the preparation of the unaudited Group
interim consolidated statement to 31 October 2025 are consistent with the
policies applied by the Group in its consolidated financial statements as at,
and for the year ended 30 April 2025.
Functional currency
The unaudited interim consolidated statements are presented in Sterling, which
is also the Group's functional currency. Amounts are rounded to the nearest
thousand, unless otherwise stated.
2. Segment information
The Group evaluates segmental performance based on profit or loss from
operations calculated in accordance with IFRS. 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. Head office central services costs
including insurances are allocated to the segments based on levels of
turnover.
Operating segments - 6 months to 31 October 2025
General Specialist Ground Head Total
Piling Piling & Rail Engineering Office £'000
£'000 £'000 Services £'000
£'000
Revenue 28,882 25,911 18,437 140 73,370
Other operating income - - - 1,000 1,000
Underlying operating profit (109) 2,700 499 (1,045) 2,045
Operating profit (109) 2,700 499 (1,261) 1,829
Finance expense - - - (218) (218)
Finance income - - - 59 59
Profit before tax (109) 2,700 499 (1,420) 1,670
Assets
Property, plant and equipment (including right of use assets) 13,898 12,793 7,173 4,957 38,821
Intangible assets 868 3,498 188 - 4,554
Inventories 2,148 1,012 3,691 139 6,990
Reportable segment assets 16,914 17,303 11,052 5,096 50,365
Deferred tax - - - 738 738
Trade and other receivables - - - 33,378 33,378
Assets held for sale - - - 3,158 3,158
Cash and cash equivalents - - - 6,736 6,736
Total assets 16,914 17,303 11,052 49,106 94,375
Liabilities
Trade and other payables - - - 23,265 23,265
Liabilities held for sale - - - 747 747
Provisions - - - 1,450 1,450
Loans and borrowings - - - 2,748 2,748
Lease liabilities - - - 6,097 6,097
Deferred tax - - - 6,297 6,297
Total liabilities - - - 40,604 40,604
Other information
Capital expenditure 2,159 1,666 2,112 148 6,085
Depreciation 1,390 1,276 753 275 3,694
The Group had one customer with revenues greater than 10% in the 6-month
period. Total revenues from the customer were £10.0m and these are reported
in the General Piling operating segment. All revenue is generated in the UK.
Operating segments - 6 months to 31 October 2024 (restated)
General Specialist Ground Head Total
Piling Piling & Rail Engineering Office £'000
£'000 £'000 Services £'000
£'000
Revenue 23,031 21,422 18,714 192 63,359
Other operating income - - - 1,455 1,455
Underlying operating profit 479 2,050 309 (667) 2,171
Operating profit 479 2,050 309 (807) 2,031
Finance expense - - - (102) (102)
Finance income - - - 100 100
Profit before tax 479 2,050 309 (809) 2,029
Assets
Property, plant and equipment (including right of use assets) 12,697 16,204 6,520 9,097 44,518
Intangible assets 868 3,924 189 - 4,981
Inventories 2,293 1,104 2,734 61 6,192
Reportable segment assets 15,858 21,232 9,443 9,158 55,691
Deferred tax - - - 370 370
Trade and other receivables - - - 33,168 33,168
Cash and cash equivalents - - - 3,814 3,814
Total assets 15,858 21,232 9,443 46,510 93,043
Liabilities
Trade and other payables - - - 21,310 21,310
Provisions - - - 1,903 1,903
Deferred consideration - - - 2,952 2,951
Lease liabilities - - - 5,880 5,880
Deferred tax - - - 6,426 6,426
Total liabilities - - - 38,471 38,471
Other information
Capital expenditure 1,313 913 118 229 2,573
Depreciation 1,294 1,224 839 594 3,951
The Group had no customers with revenues greater than 10% in the period.
Operating segments - 12 months to 30 April 2025
General Specialist Ground Head Total
Piling Piling Engineering Office £'000
£'000 & Rail Services £'000
£'000 £'000
Revenue 46,027 46,099 38,138 201 130,465
Other operating income - - - 2,833 2,833
Underlying operating profit 628 5,291 861 (1,293) 5,487
Operating profit 628 5,291 861 (1,905) 4,875
Finance expense - - - (413) (413)
Finance income - - - 186 186
Profit before tax 628 5,291 861 (2,132) 4,648
Assets
Property, plant and equipment (including right of use assets) 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 47,737
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
Trade and other payables - - - 20,277 20,277
Provisions - - - 1,445 1,445
Liabilities held for sale - - - 959 959
Loans and borrowings - - - 4,444 4,444
Lease liabilities - - - 6,743 6,743
Corporation Tax - - - 61 61
Deferred tax - - - 6,246 6,246
Total liabilities - - - 40,175 40,175
Other information
Capital expenditure 3,622 2,004 523 629 6,778
Depreciation 2,662 2,859 1,643 1,099 8,263
The Group had no customers with revenues greater than 10% in the period.
3. Revenue from contracts with customers
Disaggregation of revenue - 6 months to 31 October 2025
End market General Specialist Ground Head Total
Piling Piling & Rail Engineering Office £'000
£'000 £'000 Services £'000
£'000
Residential 8,362 1,828 13,621 - 23,811
Infrastructure 7,257 20,236 4,504 - 31,997
Regional construction 13,153 3,829 312 - 17,294
Other 110 18 - 140 268
Total 28,882 25,911 18,437 140 73,370
Disaggregation of revenue - 6 months to 31 October 2024 (restated)
End market General Specialist Ground Head Total
Piling Piling & Rail Engineering Office £'000
£'000 £'000 Services £'000
£'000
Residential 9,973 3,528 14,595 - 28,096
Infrastructure 6,171 15,481 2,759 - 24,411
Regional construction 6,783 2,409 1,349 - 10,541
Other 104 5 10 192 311
Total 23,031 21,423 18,713 192 63,359
Disaggregation of revenue - 12 months to 30 April 2025
End market General Specialist Ground Head Total
Piling Piling & 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
Contract assets
6 months to 6 months to 12 months to
31 Oct 2025 31 Oct 2024 30 Apr 2025
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
As at 1 May 5,133 4,937 4,937
Transfers from contract assets to trade receivables (5,133) (4,937) (4,937)
Excess of revenue recognised over invoiced 6,944 6,350 5,133
Impairment of contract assets - - -
As at 31 October / 30 April 6,944 6,350 5,133
Contract liabilities
6 months to 6 months to 12 months to 30 Apr 2025 (audited)
31 Oct 2025 (unaudited) 31 Oct 2024 (unaudited) £'000
£'000 £'000
As at 1 May 130 384 384
Interest on contract liabilities - - -
Contract liabilities recognised as revenue in the period (130) (384) (384)
Deposits received in advance of performance 290 22 130
As at 31 October / 30 April 290 22 130
4. Other operating income
6 months to 6 months to 12 months to 30 Apr 2025 (audited)
31 Oct 2025 (unaudited) 31 Oct 2024 (unaudited) £'000
£'000 £'000
Research and development expenditure credit relating to current period 1,000 1,107 2,034
Research and development expenditure credit relating to prior period - 438 416
Property disposal - - 383
1,000 1,545 2,833
The research and development expenditure credit relating to the current period
is based on management's estimate of the claim for the current financial year.
The research and development expenditure credit relating to the prior period
is due to an increase in the estimate of the claim value for the previous
financial year.
5. Non-underlying items
6 months to 6 months to 12 months to 30 Apr 2025 (audited)
31 Oct 2025 (unaudited) 31 Oct 2024 (unaudited) £'000
£'000 £'000
Business combination costs - 86 86
Advisory costs 76 - -
Restructuring costs - 54 116
Deferred acquisition consideration 140 - 410
216 140 612
Advisory costs relate to initiatives not in the ordinary course of business.
Deferred acquisition payments relate to deferred consideration payable for
Albion Drilling Holdings Ltd which was purchased on 28 October 2024. This has
been treated as remuneration and recognised as a non-underlying cost as it
requires the sellers to remain in employment during the deferred consideration
period.
In the prior year business combination costs relate to acquisition fees for
the purchase of Albion Drilling Holdings Ltd and its 100% owned subsidiary
Albion Drilling Group Limited on 28 October 2024.
Towards the end of FY2024, a restructure of the leadership team and several
functions commenced, which continued into FY2025. Restructure costs represent
the costs incurred in this restructure.
6. Earnings per share
The calculation of basic and diluted earnings per share is based on the
following data:
6 months to
6 months to 31 Oct 2024 (unaudited) 12 months to
31 Oct 2025 (unaudited) (restated) 30 Apr 2025 (audited)
Basic weighted average number of shares 108,200 106,741 107,184
Dilutive weighted average shares from share options - 1,138 1,107
Diluted weighted average number of shares 108,200 107,879 108,291
6 months to
6 months to 31 Oct 2024 12 months to
31 Oct 2025 (unaudited) 30 Apr 2025
(unaudited) (restated) (audited)
Profit/ (Loss) EPS DEPS Profit / (Loss) EPS DEPS Profit / (Loss) EPS DEPS
£'000
£'000
£'000
Pence
Pence
Pence
Pence
Pence
Pence
Statutory profit from continued operations 1,314 1.2 1.2 1,505 1.4 1.4 3,160 2.9 2.9
Statutory loss from discontinued operations (1,310) - - (97) - - (1,317) - -
Statutory profit for the year 4 0.0 0.0 1,408 1.3 1.3 1,843 1.7 1.7
Underlying profit from continued operations 1,530 1.4 1.4 1,645 1.5 1.5 3,741 3.5 3.5
Underlying loss from discontinued operations (1,310) - - (97) - - (1,317) - -
Underlying profit for the year 220 0.2 0.2 1,548 1.5 1.4 2,424 2.3 2.2
The calculation of the basic earnings per share is based on the earnings
attributable to ordinary shareholders and on 108,800,751 ordinary shares being
the weighted average number of ordinary shares in issue during the period.
7. Dividends paid
6 months to 6 months to 12 months to
31 Oct 2025 31 Oct 2024 30 Apr 2025
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Amounts recognised as distributions to equity holders during the Period:
Final dividend for the year ended 30 April 2024 of 0.8p per share - 854 854
Interim dividend for the year ended 30 April 2025 of 0.4p per share - - 417
Final dividend for the year ended 30 April 2025 of 0.8p per share 856 - -
Total 856 854 1,271
8. Assets held for sale and discontinued operations
The Group announced in March 2025 that a strategic review of the Canadian
operation was ongoing, following difficult trading conditions with significant
delays to the large scale opportunities that the entity was initially
established to deliver. In April 2025 the Group's Canadian subsidiary, Van
Elle Canada Inc, along with the assets located in Canada and used by the
Canadian operation, but owned by Van Elle Limited, were marketed for sale.
At 30 April 2025 and 31 October 2025 Van Elle Canada Inc and other assets
located in Canada were classified as a disposal group held for sale and as a
discontinued operation, being a significant geographical area of the Groups
operations and the only operations outside the UK. As the business is
classified as a discontinued operation the results of the subsidiary are no
longer presented in the segment note, nor is geographic reporting separately
disclosed. The income statement for the period ended 31 October 2024 has been
restated to classify the results of Van Elle Canada Inc as discontinued.
In the 6-month period ending 31 October 2025 the Canadian operation generated
revenues of £1.2m and a trading loss of £1.0m.
On 19 December 2025 the entire share capital of Van Elle Canada Inc and other
assets located in Canada were sold to 1560169 B.C. Ltd, a SPV established for
the purposes of the transaction, operating in a management partnership with
leading Canadian rail contractor, Remcan Projects LP. The effective date of
the transaction was 30 November 2025. The Disposal proceeds total
approximately CAD $4.7m, comprising an initial cash payment of CAD $2.7m, and
deferred cash consideration of approximately CAD $2.0m which is payable
between 31 January 2026 and 31 July 2026. The disposal value is equal to the
30 November 2025 net book value, with certain fixed assets valued £0.3m below
their 30 April 2025 position, reflective of continued wear and tear during
business use in the seven-month period post year end. Canada trading losses
for the month of November of £0.2m will be recognised in H2 of FY2026.
9. Analysis of cash and cash equivalents and reconciliation to net (debt)
/ funds
As at As at As at
31 Oct 2025 (unaudited) 31 Oct 2024 (unaudited) 30 Apr 2025
£'000 £'000 (audited)
£'000
Cash at bank 6,731 3,810 7,166
Cash in hand 5 4 38
Cash and cash equivalents 6,736 3,814 7,204
Loans and borrowings (2,748) - (4,444)
Lease liabilities (6,097) (5,875) (6,743)
Net (debt) / funds (2,109) (2,061) (3,983)
Net funds excl. IFRS 16 property and vehicle lease liabilities 2,752 3,068 1,087
10. Prior period restatement
During the previous financial year, a detailed review of terms of one of the
Company's long lease agreements was undertaken resulting in the restatement of
the associated IFRS 16 asset and liability.
A restatement of the profit and loss, cashflow statement and balance sheet as
30 April 2024 and 30 April 2023 was made in the FY2025 annual report and
accounts. A restatement of the profit and loss, cashflow statement and balance
sheet as at 31 October 2024 is presented in this interim report.
The total impact on the profit and loss for the 6 months ended 31 October 2024
is a £48,000 increase in profit after tax, being a reduction in
administrative costs of £19,000 and finance expenses of £45,000, with an
increased tax charge of £16,000.
The impact on net assets as at 31 October 2024 was an increase of £719,000.
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