Van Elle, a leading UK ground engineering firm, faces a 6% revenue drop while maintaining healthy margins.
- The company reported revenues of £139.5m for the year ended 30th April 2024, a decline from the previous year.
- Despite the acquisition of Rock & Alluvium, overall revenues decreased by 11% on a like-for-like basis.
- The downturn in the house-building sector and infrastructure work impacted business activities.
- Order growth and strategic expansions indicate potential future growth for Van Elle.
In the fiscal year ending 30th April 2024, Van Elle Holdings plc, the largest ground engineering contractor in the UK, reported a 6% decline in revenue, amounting to £139.5 million compared to the previous year’s £148.7 million. However, the company demonstrated financial resilience by achieving a pre-tax profit of £5.6 million, slightly up from £5.4 million the previous year, with the operating margin remaining consistent at 3.9%, unchanged from the prior year.
The revenue decline occurred despite the strategic acquisition of Rock & Alluvium, purchased from Galliford Try for £3.8 million on 30th November 2023. The acquired company had recorded turnovers of £15.5 million in 2023 and £22.2 million in 2022, indicating potential for revenue growth. However, on a like-for-like basis, Van Elle experienced an 11% revenue drop.
Chief executive Mark Cutler attributed these outcomes to a slowdown in the house-building sector and softening infrastructure projects, notably affected by the cessation of ‘smart’ motorway schemes. However, he noted that this was partially offset by unexpected demand for refuge area installations on existing ‘smart’ motorways. Cutler also highlighted an upswing in the last three months, with a significant 30% increase in orders from the house-building sector compared to the same period last year.
The company ended the financial year with an impressive order book, standing at £35.1 million by 30th April 2024, an increase from £30.8 million at the year’s start. This figure excludes framework agreements and preferred bidder positions, indicating robust potential for upcoming projects. Van Elle also expanded its fleet to 132 rigs, recently acquiring second-hand sheet piling rigs and attachments from Fussey Piling.
Mark Cutler remarked on the group’s performance, stating: “Van Elle delivered a resilient performance in the year, benefitting from the breadth of its capabilities and end markets, despite very challenging market conditions across most sectors.” He emphasised the group’s continued expansion into new sectors and geographical areas, including the acquisition of Rock & Alluvium, strategies for the water and energy sectors, and establishing rail operations in Canada. With a strong order book and multiple framework agreements, Van Elle anticipates significant growth opportunities over the medium term.
Van Elle’s strategic moves and robust order growth present bright prospects despite recent revenue challenges.
