(Alliance News) - Van Elle Holdings PLC on Friday said results for the half year ended October 31 are in line with its expectations due to a "resilient" performance, and announced the completion of its acquisition of Rock & Alluvium Ltd.
The Kirkby-In-Ashfield, England-based ground engineering contractor said it expects to report revenue of approximately GBP68 million for the first six months of financial 2024, a decrease from GBP80.8 million a year ago. Meanwhile, it expects its operating margins to be consistent with the prior year at 3.9%.
Van Elle added that its balance sheet remains strong, citing net funds of GBP8.9 million as at October 31.
Looking ahead, it said that it expects its full-year results to be in line with market expectations, which forecasts an underlying pretax profit of GBP5.0 million. Last year, Van Elle reported pretax profit of GBP5.4 million.
On Friday, Van Elle also announced that it had completed the acquisition of the entire issued share capital of UK-based piling specialist Rock & Alluvium from Galliford Try Holdings PL, for total consideration of up to GBP3.8 million. The acquisition was first announced in late October.
Van Elle had said Rock's piling rig fleet complements its existing capital investment programme. The consideration comprises of an initial GBP1.8 million payment followed by a deferred payment of GBP2.0 million payable 12 months from completion. Payments will be satisfied through its existing cash and banking facilities.
Van Elle also says it has entered a five-year trading agreement with Galliford Try, which it expects to generate over GBP10 million in revenue per year.
Shares in Van Elle were down 1.1% at 36.10 pence each in London on Friday midday.
By Sabrina Penty, Alliance News reporter
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Van Elle (VANL)
Galliford Try (GFRD)