The firm said the 16% fall in turnover to £68m in the six months to the end of October, whcih saw pretax profit drop to £2.5m from £3.5m in the prior period, represented a resilient performance in face of a more challenging market.

Mark Cutler, chief executive, said he was now hopeful of a recovery in key markets in the 12 months ahead, particularly in energy and water sectors, both of which would deliver significant opportunities in the medium term.

While work volumes in rail will dip in the transition to Control Period 7, he said this would be offset by Van Elle’s framework position on the TransPennine Route Upgrade.

Looking forward, Van Elle expects opportunities arising from CP7 to be significantly stronger than CP6 as a result of increasingly close customer partnerships.

In highways, Van Elle’s work on the retrofit safety measures as a framework partner on the Smart Motorway Programme Alliance are scheduled to commence in the next six months.

Cutler said: “Despite the anticipated lower revenues, operating margin has been maintained at 2023 levels, our balance sheet is stronger, and our future prospects are more compelling.

“We are very pleased with the acquisition of Rock & Alluvium shortly after the period end.

“The group is developing a strong market position in the energy and water sectors and is well placed to benefit from a recovery in activity levels in housing, construction, rail and highways in FY2025.”

The order book at 31 December 2023 stood at £42m including £11.6m for Rock & Alluvium.