Van Elle, the ground engineering contractor, is anticipating a decline in first half revenue amidst challenging market conditions.
According to a trading update for the six months ended 31 October 2024, the firm expects to report revenue for the period of approximately £65m, representing a decrease of 5% on the prior year.
Market conditions have continued to be challenging across all sectors, Van Elle noted, with workload subdued in Rail, as the sector transitions from CP6 into CP7, and Highways continues to experience project delays.
The business added that the impact of the Building Safety Act has caused delays to start dates of taller residential schemes, however encouragingly the new build housing sector has continued to recover, with a strong pipeline of work planned for delivery throughout the second half of the financial year.
Van Elle said it has also made further progress in developing a strong position in the water and energy sectors, and the recent acquisition of Albion Drilling provides additional momentum in Scotland.
Growth is also continuing in Canada, with the award of a new three-year framework agreement in November for the delivery of Metrolinx renewals projects worth approximately CAD$9m to the Group.
Van Elle’s order book at 31 October 2024 increased to £41.6m (30 April 2024: £35.1m).
