Van Elle profit slides in first-half

Aaron Morby 6 months 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

Construction starts climb-back after cliff-edge output fall

Monthly output still 39% or £5.2bn down on pre-Covid level
52 mins ago

B&K in ‘strong position’ after revenue tops £1bn

Bowmer & Kirkland boasts year-end net cash of £447m after profits hit £73m
1 hour ago

Contractors press Government for Sizewell C green light

£300m of early works could begin this year if Government seizes £18bn nuclear build opportunity
2 hours ago

Mace Dragados kicks-off £1.3bn HS2 Euston station build

£400m worth of subcontract packages to be let over two years
18 hours ago

Firms wanted to clear social housing repairs backlog

PfH seeks firms for £490m repairs and voids DPS deal
3 hours ago

Construction work accelerated on £170m of flood defence schemes

Work to start on 22 sites in the next two years
2 hours ago

Final London Super Sewer TBM arrives by barge

Final stretch in sight as TBM Selina prepared for deepest Thames Tideway drive
20 hours ago

Multiplex lands £140m Glasgow office job

Main construction work to start on 13-storey scheme
21 hours ago

DfE readies firms for ‘new deal’ schools building push

Over 30 firms in fight for places as existing £8bn framework comes up for renewal
1 day ago

Student rooms developer gears up to build again

Unite buys Edinburgh site for 300-bed scheme after Covid-work pause
1 day ago

Farringdon office scheme to restart after £140m funding deal

Confidence boost for London market as main contractor due to be appointed shortly
1 day ago

HS2 team unearths Iron Age murder victim

Large wood-henge structure uncovered during Buckinghamshire tunnel site excavations
1 day ago

Hotel and office block plan for Manchester Mayfield scheme

Work to start early next summer on 385,000 sq ft project
1 day ago

South London’s Purley tower approved

Developer Thornsett Group get thumbs up for 17-storey tower mixed-use scheme
1 day ago

Collapsed crane was erected day before tragedy

Wolffkran worker still seriously injured in hospital after 85-year-old woman killed
5 days ago

London council calls up firms for £6.8bn works deal

Tower Hamlets 10-year dynamic purchasing deal will cover new housing, schools and regeneration schemes
4 days ago

Arup to cut 350 UK jobs

Job cuts among 6,000 strong UK workforce to hit next month
5 days ago

Green light for £230m Sky Studios Elstree

BAM, Lendlease and VolkerFitzpatrick understood to be in running for main contract
5 days ago

M&E contractor Ilec goes into administration

Specialist goes down after sharp drop in turnover
4 days ago

Morgan Sindall starts up Salford resi tower project

Work on 23-storey apartment block reignites New Bailey scheme
4 days ago

Amey appoints former Murphy boss as transport chief

Peter Anderson to head-up Transport Infrastructure business
5 days ago

Woman killed in London crane collapse

Four others injured as jib crashes through roof of houses next to modular building site
6 days ago

Bellway asks subcontractors for 5% rate cut

House builder wants suppliers to drop prices from next month
5 days ago

Esh Group unveils 8% staff cut

Nearly 70 jobs to be cut from 840-strong workforce
5 days ago

Bouygues wins £250m London hospital expansion

Evelina London children’s hospital embarks on next phase of development plans
6 days ago

House builders returning to full productivity on site

Vistry reports falling supply chain prices while Persimmon says forward sales up 15%
5 days ago

Firms to get £1,000 for every worker brought off furlough

Plan for jobs promises £6,500 for work placement kickstarters and £2,000 for apprentices
6 days ago

£3bn green boost as construction leads Covid recovery

Investment for energy efficient retrofitting and stamp duty holiday to boost housing market
6 days ago

Law firm caps fees for smaller construction disputes

Fixed-fee adjudication service will not see legal bills for contractors rise above £5,000
6 days ago

Top contractors orders down 44% over three months

Wates tops June contracts league with major high-rise flats order
6 days ago

Contractor services