Ground engineering contractor Van Elle has issued an update on its financial performance – with profits down after a ‘challenging’ first half.
Revenue for the six months to 31 October 2023 was £68.2 million compared to £80.8 million for the same period in the prior year, with EBITDA reported at £6.2 million (2022: £6.4 million).
“Growth in the prior year was primarily driven by a select few larger commercial projects in central London, delivered substantially by the General Piling division,” said Van Elle. “With the backdrop of a more challenging and price sensitive regional construction market in the period, activity levels were below the previous period.”
Adding: “The group’s activities in central London have been strengthened by the acquisition of Rock & Alluvium shortly after the period end.”
Gross profit for the group was £20.6 million, roughly in line with 2022 results.
While operating profit was reported at close to £2.7 million (2022: close to £3.5 million), a profit margin of 3.9 per cent (2022: £4.3 per cent).
Pre-tax profit for Van Elle was nearly £2.5 million, compared to nearly £3.3 million in the previous period.
Profit after tax was £1.6 million (2022: £2.8 million).
Van Elle’s cash position was reported at £9 million, compared to £8.4 million for the same period in the prior year.
Net assets were valued at £51 million (2022: £48.4 million).
“These results represent a resilient performance in the face of expected challenging market conditions throughout FY2024, reflecting the benefits of the group’s diversified end-market exposure,” said Mark Cutler, Van Elle chief executive.
“Despite the anticipated lower revenues, operating margin has been maintained at FY2023 levels, our balance sheet is stronger, and our future prospects are more compelling.
“We are very pleased with the acquisition of Rock & Alluvium shortly after the period end.
“The group is developing a strong market position in the energy and water sectors and is well placed to benefit from a recovery in activity levels in housing, construction, rail and highways in FY2025.”
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