Ground engineering contractor Van Elle expects its group revenue to be four per cent lower than the previous year, with contract start dates being pushed back to 2026 due to Building Safety Act approval delays.
In its latest trading update, Van Elle said it expected its group revenue to be £134 million – around four per cent below the previous year – reflecting the ‘challenging market conditions’.
It reiterated the ongoing impact of ‘subdued activity levels and widespread delays to contract start dates’ due to BSA approval delays, something it had previously drawn attention to.
This had seen the start of several major contracts due in the final quarter of the 2025 financial year, which ended 30 April 2025, deferred until the 2026 financial year.
Despite the challenges, as a result of a ‘strong operational performance’, the group said it had delivered stable gross margins.
With a focus on cash management, the company said it had undertaken several cost saving initiatives – its most recent includes the transferal and consolidation of its heavy haulage operations to WS Specialist Logistics for £2.9 million in cash.
It has also executed a number of ‘selective, strategic mergers and acquisitions’, in markets which it felt aligned to the UK Government’s investment priorities and would attract growth.
This included Rock & Alluvium, a piling specialist the firm acquired for £3.8 million in November 2023 which it made a final payment of £1.9 million to in the 2025 financial year. Plus, Albion Drilling, a specialist piling and drilling business, for £3.5 million in October which it paid an initial £1.3 million.
Consequently, underlying profit before tax for FY2025 is now expected to be around £3.5 million.
The group’s current funding facility of £8 million has £6.5 million headroom.
The group’s order book grew to £41.5 million (FY2024: £35.1 million), which excludes a £10 million win for the group’s general piling division in May.
Mark Cutler, chief executive at Van Elle, said: “The last 12 months have been challenging for the business, and although it is disappointing that a recovery in activity levels didn’t materialise as expected, against a volatile backdrop the performance as a whole demonstrates the progress made over recent years.
“Amongst an increasing number of frameworks, the group has agreed two more customer partnerships in the energy and water sectors and has a growing order book, underpinning our confidence in delivering strong growth in revenues and profitability when markets recover.”
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