Strategic frameworks lay secure foundations for ground engineering firm

Strategic frameworks in highways and rail are providing solid foundations for ground engineering firm Van Elle, despite “more challenging” market conditions.

The mixed outlook in the short term, especially in new-build housing, is proving less of a concern because of the large and long-term projects it has been appointed to.

Mark Cutler, chief executive of Van Elle, said: “The group is benefitting from improved future work visibility, primarily due to being appointed to several strategic frameworks in highways and rail, all of which require an integrated delivery approach across our specialist capabilities.”

The secured frameworks provide visibility through to 2025.

Confidence is also underpinned by a record performance in the six months to October. Pre-tax profits were up 74% to £3.3m as revenues grew by one-third to £80.8m.

“Strong trading momentum was sustained throughout the period despite a challenging macro environment,” said Cutler.

“All divisions operated at high activity levels throughout, with significantly increased revenues delivered in housing and general piling, rail activity in line with expectations and the group as a whole reporting record revenues.”

Van Elle’s share price has risen 40% since early November, and is trading around its highest level since the start of the pandemic.