Revenue has dipped at Van Elle, the Nottinghamshire-based ground engineering contractor, according to a trading update for the 12 months ended 30 April 2024, as it lines up a range of further cost saving measures, including headcount reductions and efficiency projects.
Group revenue for the year is expected to be £140m, approximately 6% below the previous year including five months contribution from the acquisition of Rock & Alluvium Limited.
Van Elle noted that this “is in line with expectations and reflects the impact of prevailing market conditions, with the housing and infrastructure sectors being impacted by lower levels of demand and delays.”
Meanwhile, the business expects to report profit before tax in line with market expectations, as a result of continued focus on operational performance, whilst controlling its cost base.
Looking ahead Van Elle said: “Both the housing and infrastructure sectors are widely expected to recover in the near term, and whilst timing remains uncertain, the Group will benefit from increased volumes. Van Elle is also developing a strong position in the water and energy sectors, which are both expected to contribute materially to activity levels from FY26 and beyond.
“The Group has been awarded new frameworks in Q4 FY24 including in Network Rail’s CP7 civils and geotechnical programme, with the Coal Authority for national ground investigation services and for key customers in the energy sector.
“The Group will commence its first major energy transmission scheme in FY25 with further tender opportunities expected this year and is designing modular foundation solutions for several customers ahead of AMP8 in the water sector.
“The Board remains conservative on the timing of a full recovery in the housing sector, but the Group is seeing early signs of progress with order intake and rig utilisation increasing over the last three months.
“The Group has identified a range of further cost saving measures, consisting of headcount reductions and efficiency projects, with targeted annualised savings in excess of £1m.”
