Van Elle's transition plan leads to stronger Q2

16th Dec 2019 09:05

(Sharecast News) - Ground engineering contractor Van Elle said on Monday that an ongoing focus on initiatives laid out in its transition plan has resulted in a stronger second-quarter performance.
Van Elle noted that market conditions in the early part of the year had been "challenging", with customer uncertainty and some heightened competitive pressure resulting in a subdued first quarter.

The company now expects to report first-half revenues of roughly £48m, up from the £42.9m recorded at the same time earlier.

Nonetheless, adjusted pre-tax profits were projected to have fallen from £2.8m to £1m, reflecting both work mix and the adverse impact of the quiet first quarter.

Net debt at 31 October was £6.4m.

The AIM-listed firm noted that notwithstanding continued short term uncertainty in several of its markets, it anticipates "modest market improvement" during the second half and believes the diversity of its operations and continued delivery of its transition plan initiatives will allow it to maintain current momentum.

"Consequently, the Board believes that the group is on track to deliver a result for the current year within the range of market expectations," concluded Van Elle.

As of 0905 GMT, Van Elle shares were down 1.90% at 38.75p.