Van Elle Holdings
plc
('Van
Elle', the 'Company' or the 'Group')
Full year performance in line
with expectations; well positioned in strategic growth
sectors
Van Elle Holdings plc, the UK's
largest ground engineering contractor, provides an update on
trading for the 12 months ended 30 April 2024 ("FY24" or the
"Period").
Full year 2024 expectations in line
Group revenue for the year is
expected to be £140m, approximately 6% below the previous year
including five months contribution from the acquisition of Rock
& Alluvium Limited, or 12% lower on a like-for-like basis. This
is in line with expectations and reflects the impact of prevailing
market conditions, with the housing and infrastructure sectors
being impacted by lower levels of demand and delays.
During the Period, the Group
continued its focus on operational performance, whilst controlling
its cost base, and as a result expects to report profit before tax
in line with market expectations1.
The balance sheet remains strong
with a healthy cash balance. Net cash as at 30 April 2024
(excluding IFRS 16 property and vehicle lease liabilities)
decreased to £5.5m (30 April 2023: £7.5m) reflecting increased
investment in the year. During the Period, the Group made the final
consideration payment of £0.7m for the acquisition of ScrewFast
Foundations Limited, the initial consideration of £1.8m for the
acquisition of Rock & Alluvium, and early repayment of variable
rate hire purchase contracts of £1.1m.
The Group's funding facility of
£11.0m is unused, providing significant liquidity headroom. The
Board continues to appraise new M&A opportunities in the
Group's core and adjacent markets.
The order book as at 31 March 2024
was £36.8m (30 April 2023: £30.8m).
Integration of Rock & Alluvium
The Group completed the acquisition
of Rock & Alluvium from Galliford Try on 30 November
2023. Integration into the Group has progressed in line with
expectations, and the business is trading profitably with volumes
approximately 30% above those pre-acquisition. As expected, the
acquisition has stimulated wider growth opportunities for the Group
in London and the South East.
Outlook
Both the housing and infrastructure
sectors are widely expected to recover in the near term, and whilst
timing remains uncertain, the Group will benefit from increased
volumes. Van Elle is also developing a strong position in the
water and energy sectors, which are both expected to contribute
materially to activity levels from FY26 and
beyond.
The Group has been awarded new
frameworks in Q4 FY24 including in Network Rail's CP7 civils and
geotechnical programme, with the Coal Authority for national ground
investigation services and for key customers in the energy
sector. The Group will commence its first major energy
transmission scheme in FY25 with further tender opportunities
expected this year and is designing modular foundation solutions
for several customers ahead of AMP8 in the water sector.
The Board remains conservative on
the timing of a full recovery in the housing sector, but the Group
is seeing early signs of progress with order intake and rig
utilisation increasing over the last three months.
In Canada, the Group has continued
to develop a strong position ahead of significant rail
infrastructure opportunities including its appointment as a
strategic partner within the Toronto region expansion
programme.
The Group has identified a range of
further cost saving measures, consisting of headcount reductions
and efficiency projects, with targeted annualised savings in excess
of £1m.
Notice of results
The Company expects to announce its
results for the year ended 30 April 2024 in the second half of July
2024.
1 Company compiled analyst consensus for FY2024 underlying
profit before tax is £5.0m.
For
further information, please contact:
Van
Elle Holdings plc
Mark Cutler, Chief Executive
Officer
Graeme Campbell, Chief Financial
Officer
|
Via
Walbrook
|
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|
Peel Hunt LLP (Nominated Adviser and corporate
broker)
Ed Allsopp
Charlotte Sutcliffe
Ben Harrington
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Tel: 020 7418 8900
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Walbrook PR Limited
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Tel: 020 7933 8780
or
vanelle@walbrookpr.com
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Tom Cooper
Nick Rome
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07971 221 972 or 07748 325
236
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About Van Elle Holdings plc:
Van Elle Holdings is the UK's
largest specialist geotechnical engineering contractor. Formed in
1984 and listed on AIM in 2016, the Company provides a wide range
of ground engineering techniques and services including ground
investigation, general and specialist piling, rail geotechnical
engineering, modular foundations, and ground improvement and
stabilisation services.
Van Elle operates through three
divisions: General Piling, Specialist Piling and Rail, and Ground
Engineering Services; and is focused on diverse end markets
including residential and housing, infrastructure and regional
construction - across which the Group has completed more than
20,000 projects over the last 40 years. The Company acquired
ScrewFast Foundations Limited in April 2021 and Rock & Alluvium
Limited in November 2023.