Van Elle raises nearly £7m for Covid-19 safety net

Aaron Morby 2 years ago

Piling specialist Van Elle has raised £6.7m from shareholders to buttress it from the impact of the coronavirus shutdown.

Fresh management measures to improve cash flow by £5.3m
Fresh management measures to improve cash flow by £5.3m

Around 200 staff, representing around 40% of the total workforce, have been furloughed, while part-time working has been introduced for others.

Van Elle said it had also temporarily closed the group’s precast concrete factory.

Since mid-March the rapid spread of Covid-19 has seen most of its housing and regional construction sites close.

Most road and rail sites have remained active, albeit with increased logistical challenges in order to comply with best working practices and widespread materials disruption.

In the regional construction sector, many sites are also closed although Van Elle said that it expected some to re-open on a carefully managed basis.

Van Elle warned that these market conditions would result in a significant reduction in revenues in the period from March to May.

In its mid-case scenario, Van Elle said it expected group revenue levels to reduce to 40% of plan in May before recovering to around 80% in September, and then be maintained at that level for the remainder of the year.

Mark Cutler, chief executive officer, said: “This fundraising provides the group additional flexibility to manage the impact of Covid-19 as well as potential capacity to support growth investment as markets recover.

“The board believes that the long-term opportunity for the group remains significant.

“We have a clear strategy in place and believe the group is well-placed to capture significant opportunities as construction markets recover.”

The successful share placing with three exiting investors on Friday, represents around a third of its total shares.

The existing shareholders taking up the offer were: Ruffer Investment Management, Otus Capital Management and Premier Miton Investors.

Cutler added: “On behalf of the board, we would like to place on record our gratitude to our shareholders for their continued support in the company and to all our employees during this challenging time.”


Latest news

26 firms win £7bn schools framework – full list

B&K, Willmott Dixon, BAM, Kier and Wates chalk up both northern and southern major project lots
18 hours ago

Balfour Beatty launches neurodiverse site cabins

Cabins adapted for visually impaired and light-sensitive builders will become standard on Balfour sites
3 hours ago

French specialist Matière to install HS2 cut and cover tunnels

Stanton Precast wins pre-cast segment deal for 'green tunnels'
21 hours ago

Scottish house builder buys rival for £56m

Springfield buys Tulloch Homes to expand presence in the Highlands
4 hours ago

Wates wins contract for underground houses

Construction to start next year on earth sheltered homes in Battle, East Sussex
20 hours ago

VAT dodging electrician banned for five years

Company director barred after Insolvency Service probe
22 hours ago

£11m in extra brownfield grants awarded – list

Twenty-three sites receive brownfield funding in second tranche of grants
23 hours ago

GMI lands £30m helicopter logistic hub

Building work starts on Yeovil hub for manufacturer Leonardo
1 day ago

HS2 Euston team to get architect-designed site huts

Up to 2,500 workers and 150 students could be using the welfare facility on a daily basis
1 day ago

Firms readied for £1.3bn highways surfacing framework

Second supplier day to be held on 2 December ahead of March tender invite
1 day ago

Countryside Properties sets aside £41m for recladding

Progress made towards becoming 100% focused lower risk Partnerships business
1 day ago

BAM pairing takes £26m Sunderland train station

Demolition work will start next year on first phase southern entrance area
1 day ago

Osborne wins £21m London City grade II interior refurb

Work to start in the New Year on 84 Moorgate upgrade
2 days ago

Bouygues bags latest phase of Portobello Square regen

Construction to start next summer on North Kensington site
2 days ago

VolkerFitzpatrick wins £26m storage sheds deal

Firm has delivered several projects at the Daventry International Rail Terminal over 11 years
2 days ago

Massive Stewart Milne development goes into administration

Countesswells new town now in hands of administrators
5 days ago

Race starts for £2.5bn Ministry of Justice framework

Frameworks cover projects up to £30m and are divided into regional lots
2 days ago

London Uni submits North Acton high-rise tower cluster plan

Plans in for eight buildings ranging between 6-32 storeys in North Acton
2 days ago

Galliard forms new partnership to build 850 homes

Work to start on £300m Brimingham and Ipswich developments by next spring
2 days ago

Engineers battle to repair power network after Storm Arwen

Large sections of overhead power lines need to be rebuilt after "worst damage for 20 years"
2 days ago

Leeds £270m Lisbon Square towers approved

Work to start in the Spring on residential and office scheme
3 days ago

Green light for £65m canalside scheme in Wolverhamption

Construction to start next summer on transformation of brownfield site
2 days ago

Ex-Laing O’Rourke boss to head rejigged BAM UK business

BAM names new chief for combined UK and Ireland businesses in growth push
5 days ago

Robertson submits £150m Cardiff Arena plan

Arena work to start next Autumn with wider Atlantic Wharf regen scheme to follow
6 days ago

HS2 pioneers first ‘box-slide’ bridge over motorway

BBV will start initial site preparation over the Christmas holiday period
6 days ago

Rocks smash site huts as quarry blast goes wrong

Breedon Trading Ltd fined £300,000 after court hears worker was forced to run for cover
5 days ago

Sellafield names £250m HVAC key delivery partners

Balfour Beatty Kilpatrick and EJ Parker Technical Services take first integrated team deal
6 days ago

Cut-price home builds quadruple maintenance cost

Mount Anvil study attempts to quantify link between Capex and Opex costs
5 days ago

Ray O’Rourke to step down from Group Chief Executive role

New CEO Seamus French to join from mining giant Anglo American
6 days ago

TClarke on track for £500m revenue target

Orders surge to £525m setting fresh record for M&E specialist
6 days ago

Contractor services