(Alliance News) - Van Elle Holdings PLC said Monday it expects to report growth in revenue for the first half of its financial year, but a drop in profit due to the group's work mix and a quiet first quarter.
The ground engineering contractor said for the six months to the end of October, adjusted pretax profit is set to be around GBP1.0 million, down 64% from GBP2.8 million the year before. However, revenue is expected to be grow by 12% to around GBP48 million from GBP42.9 million.
Van Elle said that market conditions in the early part of the year were challenging, due to customer uncertainty and rising competitive pressure leading to a quiet first quarter.
Despite little market improvement, Van Elle's second quarter was much better due to the group's focus on initiatives in its transition plan.
Net debt as at October 31 was GBP6.4 million, compared to GBP5.7 million the same date the prior year.
Looking ahead, Van Elle expects modest market improvement in the second half, despite continued short term uncertainty in several of its markets, and anticipated its full-year results to be in line with market expectations.
Van Elle will publish its interim results on January 22.
Shares in Van Elle - which is headquartered in Nottinghamshire - were up 0.6% at 39.75 pence on Monday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Van Elle (VANL)