Van Elle eyes strong recovery after challenging first half

Aaron Morby 1 month ago
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Ground engineering contractor Van Elle returned to profitability in September and October after activity finally returned to pre-Covid levels.

Mark Cutler is cautiously optimistic about prospects for the remainder of this year and into next
Mark Cutler is cautiously optimistic about prospects for the remainder of this year and into next

The steady recovery in trading during a tough first half of the year came too late to avoid slipping into a £700,000 pre-tax loss after revenue dropped by a fifth to £38m.

But chief executive Mark Cutler said the firm was now looking forward to strong growth in its target markets, driven by HS2 and big spending programmes in its key wider rail and road sectors, including the Smart Motorway Programme where Van Elle is market leader.

Van Elle ended the period with a higher order book than a year ago and strong balance sheet after the £6.7m equity capital raise last April, which helped the firm to a cash balance of £9.8m.

This is supported by undrawn lending facilities of £11m.

Cutler said: “The third quarter was tougher with ongoing volatility delaying customer investment decisions, but the final quarter is returning to profitable trading levels again.

“We will be exiting the financial year with a momentum that will allow us to benefit from major opportunities in our target markets.”

“The board remain optimistic that significant opportunities exist across residential, infrastructure and regional construction, much of which remain well-funded and are underpinned by long-term structural growth dynamics.”

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