Ground engineering specialist Van Elle has said it is well positioned to benefit from “significant” opportunities across core markets, specifically in the energy sector, despite a slight downturn in its financial performance.
For the year ended 30 April 2025, preliminary results show revenue fell by 6 per cent to £130.5 million from £139.1 million the year prior, generating an operating profit of £4.9 million (FY2024: £7.2 million).
Despite market headwinds and weaker volumes in general piling, bosses said the result showed ‘resilience’ and noted a strong performance in specialist piling and rail markets.
The group was also hampered by a downturn in the residential sector, whose volumes were negatively impacted by “significant delays” in approvals due to the Building Safety Act, bosses added.
Elsewhere, Van Elle is shoring up its position within the energy sector – where it anticipates revenues could reach £40 million a year from FY2027 – particularly in Scotland, following the acquisition of Albion Drilling in October last year which strengthened its technical expertise.
It also expects to benefit from greater activity in the rail and water sectors under CP7 and AMP8.
The group’s balance sheet showed headroom of an £8 million bank facility for organic growth and M&A opportunities.
At 30 June 2025, Van Elle’s order book had increased to £52.7 million, compared to £35.3 million at the same time last year.
“Whilst FY2025 presented challenges, Van Elle succeeded in delivering a resilient performance and continuing to broaden its range of complementary services, both organically and by selective acquisition,” said Mark Cutler, chief executive.
“As a result, the group remains in a very strong position to benefit from expected improvements in many of its end markets, most of which are aligned with the government’s investment priorities.
“With a strong existing order book and solid balance sheet, the business continues to win important new framework agreements and partnerships, which gives the Board confidence in the prospects for the group.”
Van Elle just announced a new strategic partnership with multidisciplinary contractor VolkerWessels UK which, while scant on detail, includes the acquisition of the concrete piling assets of Volker Ground Engineering by Van Elle, for an undisclosed sum.
Cutler said the deal is built on a long trading relationship between the two companies, adding both would “work together closely” to support major investment programmes in the infrastructure sector, including in water, energy, defence, industrial and rail.
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