Van Elle reports higher revenue amid tough trading conditions

26th Jan 2026 10:33

(Sharecast News) - Van Elle said in its interim results on Monday that trading conditions remained challenging in the first half of its financial year, though it reported higher revenue and said it remained well positioned to benefit from an expected recovery across several of its core markets.

The AIM-traded firm reported revenue from continuing operations of £73.4m for the six months ended 31 October, up 16% from £63.4m a year earlier, driven by growth in its general piling and specialist piling and rail divisions.

Underlying EBITDA slipped to £5.7m from £6.1m, while underlying profit before tax fell to £1.9m from £2.2m, reflecting continued market headwinds and a more competitive landscape.

The company said underlying operating profit declined to £2.0m from £2.2m, with the operating margin easing to 2.8% from 3.4%, which the group attributed to product mix.

Van Elle said margins were expected to improve in the second half as a greater proportion of higher-margin, more complex projects are mobilised.

Basic earnings per share decreased to 1.2p from 1.4p, while underlying basic earnings per share edged down to 1.4p from 1.5p.

Net funds, excluding IFRS 16 lease liabilities, stood at £2.8m at the period end, compared with £3.1m a year earlier, while net debt including leases was unchanged at £2.1m.

The group declared an unchanged interim dividend of 0.4p per share.

Van Elle also confirmed the disposal of its Canadian operations in December 2025, which are treated as discontinued and excluded from the interim figures.

The order book increased 8% year on year to £44.9m at 31 October, excluding framework agreements and preferred bidder positions.

Van Elle said it continues to see strong momentum in its specialist piling and rail business, supported by increased exposure to the energy and water sectors, including the completion of its 150th high-voltage substation project.

By contrast, performance in high-rise residential construction remained weak due to delays linked to Building Safety Act approvals, which continued to weigh on its London operations.

Looking ahead, Van Elle said it expected to benefit from improving conditions in the energy, rail and water sectors, underpinned by long-term regulatory spending cycles, and from a medium-term recovery in residential construction.

The board said it remained confident of meeting full-year market expectations, with analyst consensus for underlying profit before tax at £3.0m for the year.

"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," said chief executive Mark Cutler.

"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."

At 0956 GMT, shares in Van Elle Holdings were down 0.34% at 36.38p.

Reporting by Josh White for Sharecast.com.