Van Elle H1 revenues down amid 'challenging' market conditions

1st Dec 2023 09:26

(Sharecast News) - Ground engineering contractor Van Elle Holdings said on Friday that it had traded in line with expectations during the six months ended 31 October.

Van Elle expects to report revenues of approximately £68.0m, representing a decrease of 16% on the prior year, but said operating profit margins should be consistent with those seen last year at around 3.9%.

The AIM-listed group stated its interim results reflected "a resilient operational performance" that came despite challenging market conditions, continuing inflationary pressures and delayed project starts.

Van Elle noted that there continues to be "uncertainty and subdued activity levels" in some of its end markets, particularly the housebuilding sector, which was expected to continue into the second half of the financial year. However, Van Elle added that further progress has been made on "several substantial growth opportunities" in the energy sector.

The company's order book increased to £32.7m at the end of October from £30.8m at the end of April, which excludes framework agreements and preferred bidder positions, providing it with "a strong platform" entering the second half.

"The board continues to expect results in line with market expectations for the current financial year and is confident in the group's outlook over the medium term across all of its core markets," said Van Elle.

As of 0920 GMT, Van Elle shares were down 0.55% at 36.30p.

Reporting by Iain Gilbert at Sharecast.com