Engineering firm issues profit warning despite record order book

Nottinghamshire geotechnical engineering company Van Elle has issued its second profit warning of the year after being hit by delays in contract awards and start dates.

The company says it has experienced “a level of uncertainty” in its markets and is looking at revenues being 3% lower than expected for the year-ending 30 April, and profits “slightly below” the lower end of its forecasts.

Van Elle says it is addressing the “weaknesses” in its piling division and will appoint a new director in June. Revenue recovered in Q4, the company said.

Meanwhile, the Van Elle says it has a record current order book of £35m and is preferred bidder on a further £25m of contracts. This includes approximately £10m of Smart Motorway schemes, secured in the fourth quarter, and a record order book of £12m in the housing sector for the company integrated piling and foundation solutions for national housebuilders.

A statement from the firm said: “Despite the uncertain market conditions, the Board is very encouraged that the improvement actions being taken are generating tangible operational and commercial benefits. The momentum entering the new year underpins the Board’s confidence in the prospects for the Group.”