Van Elle Holdings PLC Trading Update (1667X)
November 22 2017 - 2:01AM
UK Regulatory
TIDMVANL
RNS Number : 1667X
Van Elle Holdings PLC
22 November 2017
22 November 2017
Van Elle Holdings plc
("Van Elle" or the "Group")
Half-year trading update
Van Elle, the geotechnical engineering contractor offering a
wide range of ground engineering techniques and services to
customers in a variety of UK construction end markets, is issuing
the following trading update ahead of announcing its interim
results for the six months ended 31 October 2017 on 25 January
2018.
Overall trading in the first half of the financial year has been
positive and the Board expects to report turnover of approximately
GBP53m (H1 2016: GBP43.1m) with underlying profit before taxation
increasing by approximately 15% (H1 2016: GBP4.7m).
The General Piling division has performed strongly in the
period, benefitting from an enlarged range of rigs and techniques.
Divisional revenues have increased against the comparative period
last year, with further operational efficiencies in delivery
resulting in good profit growth.
In Ground Engineering Products, the Group's proprietary
Smartfoot(R) foundation system continues to gain share in the
market and operating performance in the period reflects the
benefits of the expanded manufacturing capacity.
Ground Engineering Services' revenues have also been
encouraging. The division has seen strong growth from the recently
established Scottish business, which has enabled the Group to
increase its activity in this region significantly, albeit overall
margins have been impacted by remedial works carried out in the
Ground Stabilisation operating unit.
Performance in the Specialist Piling division has been more
mixed, with market and operating conditions in the Group's rail
business remaining challenging in the first quarter, as indicated
in the trading update on 12 September 2017. Whilst rail turnover
growth has been reasonable, the commercial parameters in two
specific electrification contracts have resulted in a dilution to
gross margin, with a result that divisional profit will be below
that in the comparative period. Pleasingly, margin performance has
improved consistently during the second quarter and expectations
for the second half are for a return to satisfactory levels.
Cash performance in the half has been good, with the strong
operating cash flow generated. The Group has also continued to
invest, acquiring nine new rigs which will enhance its service
offering.
The Group has a seasonal weighting towards a stronger second
half and the Board expects this will be the case again in the
current year. As the Group enters H2, enquiry levels are
encouraging and the current order book as at November remains
strong. The Board continues to monitor market conditions closely
and whilst mindful that the Group is subject to clients' decisions
regarding contract call-off timing, its expectations for the full
year remain unchanged.
Enquiries:
Instinctif Partners (Financial
Public Relations) 020 7457 2020
Mark Garraway
James Gray
Rosie Driscoll
Peel Hunt LLP (Nominated Adviser
and corporate broker) 020 7418 8900
Charles Batten
Mike Bell
Justin Jones
Market Abuse Regulation
The information contained within this announcement is deemed by
Van Elle to constitute inside information as stipulated under the
Market Abuse Regulation. Upon the publication of this announcement
via a regulatory information service, this inside information is
now considered to be in the public domain.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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