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16 Dec 2019 07:00
16 December 2019
Van Elle Holdings plc
("Van Elle" or the "Group")
Trading Update
Van Elle, the UK's largest ground engineering contractor, is issuing the following trading update ahead of the announcement of its results for the six months to 31 October 2019 ("H12020").
As set out in Van Elle's full-year results, announced on 24 July 2019, market conditions in the early part of the year were challenging, with customer uncertainty and some heightened competitive pressure resulting in a subdued first quarter. Whilst market conditions have not yet notably improved, the Group's ongoing focus on the initiatives in its transition plan resulted in a stronger second quarter performance.
As a result, the Group expects, subject to completion of the interim audit review, to report first half revenues of circa £48m (H12019; £42.9m) and adjusted PBT of circa £1.0m (H12019; £2.8m), reflecting both work mix and the adverse impact of the quiet first quarter. Net debt at 31 October 2019 was £6.4m (H12019; £5.7m) excluding adjustment for leases under IFRS16.
Notwithstanding continued short term uncertainty in several of the Group's markets, including the commercial building sector and subdued activity levels in year one of Network Rail's Control Period 6, the Board anticipates modest market improvement during the second half and believes the diversity of the Group's operations and continued delivery of its transition plan initiatives will allow it to maintain the current momentum. Consequently, the Board believes that the Group is on-track to deliver a result for the current year within the range of market expectations.
The results for H12020 will be published on 22 January 2020.
Enquiries:
Instinctif Partners (Financial Public Relations) Tel: 020 7457 2020
Mark Garraway
James Gray
Rosie Driscoll
Peel Hunt LLP (Nominated Adviser and corporate broker) Tel: 020 7418 8900
Mike Bell
Ed Allsopp
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