Revenue jumps at Van Elle but weak first quarter hits profits
Van Elle, the Nottinghamshire-based ground engineering contractor, has posted a 13.1 per cent increase in revenue in its interim results for the six months ended 31 October 2019.
The firm turned over £48.5 million during the period, although its underlying pre-tax profits took a hit, dropping to £1.1 million from £2.8 million last year.
In a statement to the London Stock Exchange, Van Elle attributed its revenue growth to a simplified divisional structure, “strengthened leadership” and ongoing investment in the development of new products and services.
The decline in profits, the company said, was due to a “weak” first quarter and an “adverse sales mix across the period.”
Van Elle has also announced that its new CFO Graeme Campbell will join the firm from Severfield on 17 February 2020.
Chief executive Mark Cutler said: “The business continues to improve and, despite challenging market conditions through the first half, we have made progress. We have a clear strategy focused on three core markets – housing, infrastructure and regional construction – where we offer a broad range of end-to-end technical capabilities through our extensive and well-invested rig fleet. Good progress continues to be made in building long term and strategic relationships with our key customers in all sectors.
“Operational performance is stable with previous challenges now substantially addressed. The simplified divisional structure with motivated, co-located teams under strengthened leadership means that we are more efficient and joined-up. This allows us to focus even more intently on customer service, operational excellence, margin improvement and cash generation.
“Whilst mindful of ongoing volatility across construction markets and recognising a slower Q3 than previous years due to subdued rail activity, the Board expects some market improvement and further progress in the balance of the second half. This is also supported by the benefits of ongoing improvements under the Group’s transformation programme. Consequently, the Board expects to deliver results for the full year within the range of market expectations.”
