Van Elle feels the ground shift as profits take a dip
Piling and groundworks firm Van Elle has reported a near 30% drop in first-half interim profits, citing tough market conditions and project delays.
Despite securing several deals and making acquisitions in 2024, profits at the Nottinghamshire-based groundworks firm fell from £2.5m to £1.9m, while revenue declined by 4.5% to £65.2m.
Strong performances in specialist piling and rail were offset by weaker volumes in general piling and ground engineering services.
The company highlighted delays caused by the Building Safety Act, which have stalled many taller residential projects, particularly affecting its Rock & Alluvium division.
It expects planning issues to be resolved in 2025, providing a stronger workload heading into FY2026.
Mark Cutler, chief executive said: “The Group has faced another challenging period. However, it has continued to make significant strategic progress, positioning Van Elle in attractive end markets and strengthening its core offering to deliver for clients. We have been focused on driving operational efficiencies and have a right-sized cost base appropriate to the current levels of demand.
There are positive signs in the housing sector, with orders up 52%, while rail activity continues to grow with projects like the TransPennine Route upgrade.
Meanwhile, Van Elle Canada has won new contracts for Toronto’s Metrolinx rail network upgrade.
The company was also named a delivery partner for Network Rail’s Southern Region 10-year framework, as it focuses on improving efficiency and managing costs.
Shares in Van Elle were down 1.3% on Wednesday afternoon.
