Last checked at 22 May 2024 07:00
Van Elle Holdings plc
('Van Elle', the 'Company' or the 'Group')
Full year performance in line with expectations; well positioned in strategic growth sectors
Van Elle Holdings plc, the UK's largest ground engineering contractor, provides an update on trading for the 12 months ended 30 April 2024 ("FY24" or the "Period").
Full year 2024 expectations in line
Group revenue for the year is expected to be £140m, approximately 6% below the previous year including five months contribution from the acquisition of Rock & Alluvium Limited, or 12% lower on a like-for-like basis. This is in line with expectations and reflects the impact of prevailing market conditions, with the housing and infrastructure sectors being impacted by lower levels of demand and delays.
During the Period, the Group continued its focus on operational performance, whilst controlling its cost base, and as a result expects to report profit before tax in line with market expectations1.
The balance sheet remains strong with a healthy cash balance. Net cash as at 30 April 2024 (excluding IFRS 16 property and vehicle lease liabilities) decreased to £5.5m (30 April 2023: £7.5m) reflecting increased investment in the year. During the Period, the Group made the final consideration payment of £0.7m for the acquisition of ScrewFast Foundations Limited, the initial consideration of £1.8m for the acquisition of Rock & Alluvium, and early repayment of variable rate hire purchase contracts of £1.1m.
The Group's funding facility of £11.0m is unused, providing significant liquidity headroom. The Board continues to appraise new M&A opportunities in the Group's core and adjacent markets.
The order book as at 31 March 2024 was £36.8m (30 April 2023: £30.8m).
Integration of Rock & Alluvium
The Group completed the acquisition of Rock & Alluvium from Galliford Try on 30 November 2023. Integration into the Group has progressed in line with expectations, and the business is trading profitably with volumes approximately 30% above those pre-acquisition. As expected, the acquisition has stimulated wider growth opportunities for the Group in London and the South East.
Outlook
Both the housing and infrastructure sectors are widely expected to recover in the near term, and whilst timing remains uncertain, the Group will benefit from increased volumes. Van Elle is also developing a strong position in the water and energy sectors, which are both expected to contribute materially to activity levels from FY26 and beyond.
The Group has been awarded new frameworks in Q4 FY24 including in Network Rail's CP7 civils and geotechnical programme, with the Coal Authority for national ground investigation services and for key customers in the energy sector. The Group will commence its first major energy transmission scheme in FY25 with further tender opportunities expected this year and is designing modular foundation solutions for several customers ahead of AMP8 in the water sector.
The Board remains conservative on the timing of a full recovery in the housing sector, but the Group is seeing early signs of progress with order intake and rig utilisation increasing over the last three months.
In Canada, the Group has continued to develop a strong position ahead of significant rail infrastructure opportunities including its appointment as a strategic partner within the Toronto region expansion programme.
The Group has identified a range of further cost saving measures, consisting of headcount reductions and efficiency projects, with targeted annualised savings in excess of £1m.
Notice of results
The Company expects to announce its results for the year ended 30 April 2024 in the second half of July 2024.
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 Charlotte Sutcliffe 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 40 years. The Company acquired ScrewFast Foundations Limited in April 2021 and Rock & Alluvium Limited in November 2023.