The firm鈥檚 interim results for the first half of the financial year show that turnover remained fairly stable at 拢65.2m, a decrease of 4% compared to the prior year (H1 FY2024: 拢68.2m).
Pre-tax profits slipped to 拢1.9m (H1 2024: 拢2.7m) although underlying earnings before interest, tax, depreciation and amortisation (EBITDA) remained unchanged at 拢6.2m.
Strong performance in Van Elle鈥檚 specialist piling and rail division was offset by weaker volumes in general piling and ground engineering services.
Among the highlights of last year was the acquisition of Stirling-based Albion Drilling Group in October 2024 which expanded Van Elle鈥檚 technical capabilities and its presence in Scotland.
The company reported that market conditions remain challenging in several sectors although housing is showing signs of recovery and rail remains strong.
Despite a slow start to Network Rail鈥檚 Control Period 7, Van Elle said its rail activities are increasing thanks to its 鈥渄iverse spread of customer relationships鈥� and ongoing TransPennine Route upgrade works.
Order book was up 24% to 拢43.4m at 31st December 2024 (拢35.1m at 30 April 2024), excluding framework agreements and preferred bidder positions.
Chief executive Mark Cutler said the group has had to face another challenging period. 鈥淗owever it has continued to make significant strategic progress, positioning Van Elle in attractive end markets and strengthening its core offering to deliver for clients. We have been focused on driving operational efficiencies and have a right-sized cost base, appropriate to the current levels of demand.
鈥淭he acquisition of Albion Drilling has accelerated our expansion into both Scotland and the energy sector and broadened our specialist capabilities, while specialist piling activity levels notably increased in the period.
鈥淭he group as a whole has continued to secure a solid pipeline of future work, including several targeted key contract wins. Alongside the increase in volumes experienced in our housing division, our other key markets are expected to continue improving over the coming months, and coupled with a strong order book, we remain confident in delivering a full year performance in line with market expectations.鈥�
Got a story? Email news@theconstructionindex.co.uk
