Van Elle has reported a “resilient” operational performance with strong momentum in the UK’s energy and water sectors, as it prepares to exit the Canadian construction market after two years.
In a trading update, issued this morning, the piling specialist said increased activity within its General Piling and Strata Geotechnics divisions had driven up revenue by 12 per cent this year to almost £73 million.
The group is enjoying good momentum in British energy and water, where it said the medium-term opportunity is “significant”.
This includes joining United Utilities’ AMP8 ground investigation framework as well as several wastewater schemes with Costain, Galliford Try, and Kier.
While in energy, ground investigation and design workstreams are progressing on the 400kV Beauly to Loch Buidhe transmission project for Wood Group, alongside other projects for M Group.
Other major projects in these sectors include HS2, Hinkley Point C, and the Lower Thames Crossing.
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Bosses said they are “confident” the ground engineering contractor will deliver results for the full year in line with market expectations, with underlying pre-tax profit expected to come in at £3 million, amid tough trading conditions and a sluggish approval process by the Building Safety Regulator (BSR).
Yesterday (15 December), Van Elle announced the sale of its subsidiary Van Elle Canada, two years after entering the Canadian market.
The deal, worth approximately CAD$4.7 million in total, will see the new owner, a special-purpose vehicle backed by Canadian rail contractor Remcan Projects, take control of the business this week.
Van Elle entered the Canadian construction market in 2023 to offset its investments in the UK rail sector, but incurred losses due to project delays.
“The group’s results for continuing operations in the period are in line with the Board’s expectations,” bosses said.
“This reflects a resilient operational performance despite the challenging market conditions, and in particular, the continued delays to Building Safety Act approvals for high-rise residential buildings.”
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