A profit warning has been issued by Van Elle, the Nottinghamshire-based ground engineering contractor in a trading update ahead of the announcement of its results for the year ending 30 April 2019.
While the Board had expected to report adjusted profit before tax of slightly over £5m, the Board has now “determined it necessary to adjust a small number of specific balance sheet items and contract accruals.” The will see profit before tax adjusted down by £0.5m.
In a statement to the London Stock Exchange Van Elle added: “Despite the encouraging momentum at the end of last year, the Group is continuing to experience customer uncertainty in some of its markets, resulting in a quiet start to the year in some segments and increased volatility in month on month performance.
“As set out in April, the Group has been successful in securing positions on attractive, long term contracts. Although the Company is seeing the benefits of a number of commercial and operational initiatives recently implemented, the Board is mindful that market uncertainty and the resultant volatility may persist further into the current financial year, which would limit the rate at which progress can be made.”