Van Elle profit slides in first-half

Aaron Morby 4 years ago
Share

Ground engineering specialist Van Elle has suffered a hit in profitability after higher margin railway work slowed in the first half.

Mark Cutler is counting on a better second half as more rail work comes through
Mark Cutler is counting on a better second half as more rail work comes through

Pre-tax profit slumped from £2.4m previously to just £900,000 in the six months to the end of October.

Revenue grew by 13% to £48.5m reflecting growth in the housing and highways markets, although the piling specialist reported subdued conditions in its higher margin commercial and rail markets.

Cash performance was affected by two long-running final accounts, lifting net debt to £10.4m from £5.6m in the previous first half.

General and Specialist Piling revenues were slightly down, while there was significant growth within Ground Engineering Services, up £7m to £17m.

This was driven primarily by housing growth as a result of closer relationships with national house builders which are asking for faster build times and integrated piling and foundation solutions.

But Van Elle also saw increased competition in the regional construction market and subdued activity levels in the rail sector as a result of delays to Network Rail’s CP6 programme.

Mark Cutler, Chief Executive, said: “While mindful of ongoing volatility across construction markets and recognising a slower Q3 than previous years due to subdued rail activity, the board expects some market improvement and further progress in the balance of the second half.

“This is also supported by the benefits of ongoing improvements under the group’s transformation programme.

“Consequently, the board expects to deliver results for the full year within the range of market expectations.”

He added: “We have a clear strategy focused on three core markets – housing, infrastructure and regional construction – where we offer a broad range of end-to-end technical capabilities through our extensive and well-invested rig fleet.

“Good progress continues to be made in building long term and strategic relationships with our key customers in all sectors.”

Latest news

Mace confirmed on £100m London office retrofit

Work underway on Helical's 100 New Bridge Street job near Ludgate Circus
6 hours ago

Wylfa chosen for next big nuclear power station build

Government names Anglesey site for a large-scale gigawatt nuclear power plant.
9 hours ago

Bowmer & Kirkland trading profit halves

Contractor buys HVAC specialist Adcock despite challenging market
9 hours ago

Piling specialist Van Elle plans further job cuts

Piling specialist plans further cost savings in face of lower demand
10 hours ago

Civils contractor A Catlow files administration notice

High voltage cable specialist lodges court notice
9 hours ago

Green light for ARC Oxford lab campus

Work to start later this year on £40m Ascent building job
10 hours ago

Stonehenge tunnel hit by another legal delay

Court upholds latest appeal against £1.7bn scheme by campaigners
1 day ago

Plans go in for huge Olympic Park construction hub

Bow Goods Yard could deliver 3.5m tonnes of materials a year to sites across London
1 day ago

40% affordable homes target for Labour’s new towns

Labour pledges to select new town sites by end of first year
1 day ago

Plan for £100m Liverpool Baltic station

Construction work could begin next year
1 day ago

Surgo Construction went down owing £4.5m

Biggest creditor is Bellway Homes after dispute on housing job
1 day ago

Vistry seals £157m West London housing deal

Around 575 homes to be built at Merrick Place scheme in Ealing
1 day ago

Streamlined Watkin Jones returns to profit in first half

Multi-room specialist sees secured work pipeline hit £1.4bn
1 day ago

Bellway hires ex-brickie as group construction chief

James Griffin to oversee move to the Future Homes Standard and timber frame.
1 day ago

Persimmon under fire for delays to £10m relief road

West Suffolk Council serves Breach of Condition Notices after timetable slips again
1 day ago

BAM wins £33m Kent secondary school job

Replacement Swanley academy to be built at live school site
1 day ago

Aluminium cladding specialist collapses

Melton Mowbray-based firm worked for several main contractors
2 days ago

Brickwork contractor Lee Marley returns to profit

Affordable and rental homes demand lifts brickwork contractor
2 days ago

Housing contractor Durkan suffers second year of losses

More fire safety provisions tip firm into £3.9m loss
2 days ago

Farrans makes breakthrough on tricky tunnel job

Tunnel under Tees latest part of new £155m water pipeline job
2 days ago

Heidelberg buys aggregates and earthworks specialist B&A

Latest deal follows acquisition of Mick George
2 days ago

Flagship biodiversity net gain scheme flawed

NAO warns Government's flagship green development scheme at risk of failure
5 days ago

Plan in for £3bn Lincolnshire mega data centre

3.3m sq ft Humber Tech Park will be one of Europe's largest data centres
5 days ago

Green light for Digbeth 1,300 homes scheme

Warner’s Fields scheme to start with excavation and landscaping of the River Rea
5 days ago

£210m M3 Junction 9 upgrade gains consent

VolkerFitzpatrick to start work in early 2025 on Winnall roundabout, near Winchester
5 days ago

United Living wins 14-year L&Q homes repairs deal

Trafford housing upkeep deal worth £205m
5 days ago

£400m Lewisham resi-led scheme advances

Land deal paves way for Amro Partners' 1,000-home London scheme
5 days ago

McLaren gets go-ahead for Grade II listed Leeds student scheme

Springfield House to be revamped and two new wings added
5 days ago

Piling giant to fit people alarms on all rigs

Cementation Skanska upgrades site safety systems
5 days ago

Vistry to make £800m profit after subcontractor cost cuts

House builder bullish about shareholder returns after asking suppliers for discounts
6 days ago

Contractor services