LONDON - Van Elle Holdings plc (AIM: VANL), the UK's leading ground engineering contractor, has reported a slight decline in revenue for the first half of the financial year ending October 31, 2024. The company announced revenues of approximately £65 million, down 5% from the previous year's £68 million during the same period.
The firm attributes the downturn to challenging market conditions across all sectors, with specific setbacks in Rail and Highways due to transitional phases and project delays, respectively. Additionally, the Building Safety Act has led to delays in the commencement of taller residential schemes. Despite these challenges, the new build housing sector exhibits signs of recovery, with a strong work pipeline expected to contribute to the second half of the financial year.
Van Elle has seen progress in the water and energy sectors, bolstered by the recent acquisition of Albion Drilling, which has performed in line with expectations post-acquisition. Notably, new energy contracts in Scotland are set to commence in the fourth quarter of FY2025.
Growth continues internationally, with the company securing a three-year framework agreement in November for Metrolinx renewals projects in Canada, estimated at CAD$9 million, starting in the fourth quarter of FY2025.
The order book as of October 31, 2024, stands at £41.6 million, up from £35.1 million on April 30, 2024. This figure includes £1.4 million from the Albion acquisition but excludes framework agreements and preferred bidder positions.
The Board anticipates full-year results to align with market consensus, which forecasts an underlying profit before tax of £6.0 million for FY2025, expecting profitability to be weighted towards the latter half of the year.
Van Elle plans to announce its half-year results on January 29, 2025, with an analyst briefing scheduled for 10:00 am and an investor presentation at 3:30 pm on the same day. These events will provide further insights into the company's results and outlook.
Investors and analysts can access the presentation through Investor Meet Company's digital platform and have the opportunity to submit questions in advance or in real time during the event. This trading update is based on a press release statement issued by Van Elle Holdings plc.
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