Ground engineering contractor Van Elle remains optimistic about profits despite subdued rail activity and project delays in highways work.
The group said it expects to deliver revenue for the six months ended 31 October 2024 of approximately £65 million, a 5 per cent decrease on the previous year (HY2024: £68 million).
“Market conditions have continued to be challenging across all sectors,” said Van Elle.
“Workload has been subdued in Rail, as the sector transitions from CP6 into CP7, and Highways continues to experience project delays.”
The contractor said the Building Safety Act had also caused delays to start dates of taller residential schemes.
But that it was ‘encouraged’ by the continued recovery of the new-build housing sector, in which it has a strong pipeline of work planned for the second half.
Van Elle’s orderbook value increased to £41.6 million (30 April 2024: £35.1 million), including £1.4 million from the acquisition of Albion Drilling.
The group also developed a stronger position in the water and energy sectors during the period, adding the acquisition of Albion provided additional momentum in Scotland where new energy contracts will start in Q4 FY2025.
Also, in Q4 FY2025, Van Elle will begin a three-year framework in Canada for the delivery of Metrolinx renewals projects, worth approximately CAD$9 million to the group.
The Board continues to expect to deliver underlying pre-tax profit of £6 million for the full year, with profitability being second half weighted.
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