Last checked at 1 Dec 2023 07:00
Van Elle Holdings plc
('Van Elle', the 'Company' or the 'Group')
First Half Trading Update
Notice of Results
Analyst Briefing & Investor Presentation
Van Elle Holdings plc (AIM: VANL), the UK's largest ground engineering contractor, today provides a trading update for the six months ended 31 October 2023 (the 'Period'), and an update on the acquisition of Rock and Alluvium Ltd ('Rock and Alluvium' or the 'Acquisition').
Trading update
The Group's results for the Period are in line with the Board's expectations. This reflects a resilient operational performance despite challenging market conditions, continuing inflationary pressures and delayed project starts.
The Group expects to report revenues for the Period of approximately £68m, representing a decrease of 16% on the prior year (HY2023: £80.8m), but expects to report operating profit margins consistent with the prior year (FY2023: 3.9%).
The Group's balance sheet remains strong, with a net funds position (excluding IFRS16 lease liabilities) of £8.9m at Period end (30 April 2023: £7.5m) and flexibility afforded by the Group's undrawn funding facility of up to £11m.
There continues to be uncertainty and subdued activity levels in some of the Group's end markets, particularly the housebuilding sector, which is expected to continue into the second half of the financial year.
However, further progress has been made on several substantial growth opportunities in the energy sector. The costs of establishing the Group's new Canadian rail subsidiary have been absorbed in the Period and initial projects commenced in the second quarter.
The order book at 31 October 2023 increased to £32.7m (30 April 2023: £30.8m), which excludes framework agreements and preferred bidder positions, providing a strong platform entering the second half.
The Board continues to expect results in line with market expectations1 for the current financial year and is confident in the Group's outlook over the medium term across all of its core markets.
Acquisition update
On 26 October 2023, the Group announced that agreement had been reached with Galliford Try Holdings plc to acquire Rock and Alluvium Ltd and enter into a five-year trading agreement. The Acquisition completed on 30 November 2023. There are early signs of a recovery in commercial and residential opportunities in London and the south east which Rock and Alluvium, as part of the Van Elle Group, is well placed to benefit from. Accordingly, the Board expects the Acquisition to be accretive to underlying earnings in the first full year of ownership.
Notice of results
The Company expects to announce its half-year results for the six months ended 31 October 2023 on Wednesday, 24 January 2024.
Analyst Briefing: 9.30am, Wednesday 24 January 2024
A briefing for Analysts will be held at 9.30am on the morning of the results. Analysts interested in attending should contact Walbrook PR on vanelle@walbrookpr.com or 020 7933 8780.
Investor Presentation: 3.30pm, Wednesday 24 January 2024
Mark Cutler, Chief Executive Officer, and Graeme Campbell, Chief Financial Officer, will hold a presentation to review the results and outlook at 3.30pm on 24 January 2024. The presentation will be hosted through the digital platform Investor Meet Company.
Investors can sign up to Investor Meet Company for free and add to meet Van Elle Holdings plc via the following link https://www.investormeetcompany.com/van-elle-holdings-plc/register-investor.
Investors who have already registered and added to meet the Company will automatically be invited. Questions can be submitted pre-event to vanelle@walbrookpr.com, or in real time during the presentation via the "Ask a Question" function.
1 Company compiled analyst consensus for FY2024 underlying profit before tax is £5.0m.
For further information, please contact:
Van Elle Holdings plc Mark Cutler, Chief Executive Officer Graeme Campbell, Chief Financial Officer | Via Walbrook |
Peel Hunt LLP (Nominated Adviser and corporate broker) Ed Allsopp / Ben Harrington | Tel: 020 7418 8900 |
Walbrook PR Limited | Tel: 020 7933 8780 or vanelle@walbrookpr.com |
Tom Cooper / Nick Rome | 07971 221 972 or 07748 325 236 |
About Van Elle Holdings plc:
Van Elle Holdings is the UK's largest specialist geotechnical engineering contractor. Formed in 1984 and listed on AIM in 2016, the Company provides a wide range of ground engineering techniques and services including ground investigation, general and specialist piling, rail geotechnical engineering, modular foundations, and ground improvement and stabilisation services.
Van Elle operates through three divisions: General Piling, Specialist Piling and Rail, and Ground Engineering Services; and is focused on diverse end markets including residential and housing, infrastructure and regional construction - across which the Group has completed more than 20,000 projects over the last 35 years.