Van Elle holds margins despite dip in revenue

Chief executive Mark Cutler

In the year ended 30th April 2024 Van Elle Holdings plc generated revenue of GBP139.5m (2023: GBP148.7m) and made a pre-tax profit of GBP5.6m (2023: GBP5.4m). The underlying operating margin remained at 3.9%, consistent with the previous year. The slight fall in turnover came despite the addition of five months trading from Rock & Alluvium, which was acquired from Galliford Try for GBP3.8m on 30th November 2023.

Rock & Alluvium had turned over GBP15.5m in 2023 and GBP22.2m in 2022 so might have been expected to help Van Elle revenues grow. On a like-for-like basis, Van Elle group revenue was 11% down. Chief executive Mark Cutler said that the acquired business had traded in line with plans and given the group a stronger presence in London and the southeast but the downturn in the house-building sector had impacted on activity.

Infrastructure work also softened, with the axing of ‘smart’ motorway schemes, although this was partially compensated by unexpected demand for the installation of refuge areas on existing ‘smart’ motorways. However, Van Elle has seen an upswing in the past three months; since the end of the financial year it has taken 30% more orders from the house-building sector than in the same period last year.

Across the group, the order book stood at GBP35.1m on 30th April 2024 compared to GBP30.8m at the start of the financial year. (This is excluding framework agreements and preferred bidder positions.) Van Elle today operates a fleet of 132 rigs, including two second-hand sheet piling[1] rigs and attachments[2] recently bought from Fussey Piling[3].

Mark Cutler said: “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. “The group has continued to expand its offering, grow geographically and enter new sectors, through the acquisition of Rock & Alluvium, its strategy for the water and energy sectors, and the establishment of rail operations in Canada. “We start the new financial year with a strong order book and multiple framework agreements.

Our focus on key customer partnerships and strategic markets is expected to deliver significant growth opportunities over the medium term.”

Got a story?

Email [email protected][4]

References

1. ^ Search for suppliers of Piling (www.theconstructionindex.co.uk)
2. ^ Search for suppliers of Attachments (www.theconstructionindex.co.uk)
3. ^ Search for suppliers of Piling (www.theconstructionindex.co.uk)
4. ^ [email protected] (www.theconstructionindex.co.uk)