Impact of lockdown plunges engineering firm into the red

Van Elle, the Nottinghamshire piling firm, has slipped into the red after the impact of the Covid-19 lockdown in the last six weeks of its financial year hit the company.

For the year to the end of April, Van Elle Holdings made a pre-tax loss of £2.2m on revenue of down 4.6% to £84.4m.

The previous year it made a profit of £4m before tax on revenue of £88.5m.

Van Elle said the majority of customer sites closed in late March and throughout April, reducing revenues by approximately £10m compared to pre-COVID internal expectations.

Mark Cutler, chief executive, said: “These results reflect a challenging trading environment that persisted for much of the year and which was significantly exacerbated by the impact of COVID-19.
“Our strategy remains unchanged: improving the operational performance of the business whilst developing positions for differentiation and growth with key customers in the housing, infrastructure and construction sectors.

“Despite the market conditions, we made good progress in the delivery of this strategic plan. The restructuring programme has been completed, with a streamlined divisional structure now in place. This, combined with the strengthened financial position following the successful share placing in April, means that the group is better positioned to return to growth as markets improve.”

Cutler added that the company’s 2010 financial year has started encouragingly, with activity levels recovering slightly ahead of expectations.

“We look forward, subject to no further significant business interruptions arising from any further COVID-19 disruption, to returning to full operational capacity by the end of Q3 FY2021, he said.