Ground engineering contractor Van Elle expects ‘little near-term growth’ as it tries to navigate changes to building safety standards.
Due to the timings of approvals relating to the Building Safety Act, the group suffered widespread project delays in the year to 30 April 2025.
These setbacks primarily impacted trading for Rock & Alluvium, a piling specialist the firm acquired for £3.8 million in November 2023, which operates within the taller residential sector in London and the southeast.
Van Elle also said the performance of its UK operations is likely to be impacted in 2025 after more than 40 projects could potentially be pushed back to next year.
In Canada, where Van Elle’s overseas operation is a strategic supply partner to the major infrastructure upgrade programme for the Toronto rail network, further delays will likely impact that division’s trading performance too.
Consequently, the Board expects underlying profit before tax for the second half to be like the first half.
The group said however it is looking forward to several large projects recently secured by its General Piling division which will be delivered in early 2026.
“Despite benefitting from a strong order book, the trading environment and volumes remained suppressed throughout January and February,” a trading update reads.
“In light of the trading pressures the group is facing, there is an acute focus on careful working capital management and aligning its cost base to drive operating efficiencies.
“Additionally, the group has disposed of certain non-core assets in support of a robust balance sheet and its objective of improving ROCE.”
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