Ground engineering firm warns of revenue dip amid tough market

A Nottinghamshire-based ground engineering contractor has warned of a dip in revenue due to tough market conditions.
Van Elle expects to report around £65m in revenue in its full-year results, a 5% decrease from £68m in the same period last year.
The firm says the drop is due to challenges across multiple sectors. The rail sector is transitioning from CP6 to CP7, leading to quieter times, while highway projects are facing delays.
The Building Safety Act has also slowed down start dates for taller residential projects.
On a positive note, the Van Elle reports that the newly-built housing sector is bouncing back, and there’s a strong pipeline of work lined up for the second half of the year.
Van Elle has also been making strides in the water and energy sectors. The recent acquisition of Albion Drilling boosts its position in Scotland, where new energy contracts are set to kick off in Q4 FY2025.
The company is also expanding in Canada, with a new three-year framework agreement for Metrolinx renewal projects worth around CAD$9m, starting in Q4 FY2025.
As of 31 October 2024, the order book stands at £41.6m, up from £35.1m in April 2024.