Van Elle, the ground engineering contractor, has said its half year results are in line with expectations and reflect “a resilient operational performance despite challenging market conditions, continuing inflationary pressures and delayed project starts.”
In a trading update for the six months ended 31 October 2023, the Nottinghamshire business revealed that it anticipates revenues of approximately £68m – a decrease of 16% on the same period of last year (£80.8m). However Van Elle expects to report operating profit margins consistent with last year.
Van Elle noted: “There continues to be uncertainty and subdued activity levels in some of the Group’s end markets, particularly the housebuilding sector, which is expected to continue into the second half of the financial year.
“However, further progress has been made on several substantial growth opportunities in the energy sector. The costs of establishing the Group’s new Canadian rail subsidiary have been absorbed in the Period and initial projects commenced in the second quarter.
“The order book at 31 October 2023 increased to £32.7m (30 April 2023: £30.8m), which excludes framework agreements and preferred bidder positions, providing a strong platform entering the second half.
“The Board continues to expect results in line with market expectations for the current financial year and is confident in the Group’s outlook over the medium term across all of its core markets.”
