Van Elle Holdings PLC Full year trading update (2119X)
April 26 2019 - 2:01AM
UK Regulatory
TIDMVANL
RNS Number : 2119X
Van Elle Holdings PLC
26 April 2019
26 April 2019
Van Elle Holdings plc
("Van Elle" or the "Group")
Full year trading update
Van Elle, the leading geotechnical engineering company 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 for the year ending 30 April 2019.
The business continues to make good progress on its transition
plan, announced in January 2019, in terms of improved operational
efficiency and a more effective commercial approach.
In terms of current year performance, the Group has experienced
a level of uncertainty in its markets, particularly in the
infrastructure sector, in the latter part of the year. This has
meant that, despite encouraging progress in winning work, some
contract award and start dates have been delayed by customers. As a
result, whilst volumes in the fourth quarter have been the
strongest of the year to date, sales for the full year are expected
to fall short of levels previously expected by circa 3%. This
reduction in forecast sales for the current year is expected to
result in the Group delivering full year adjusted PBT slightly
below the lower end of the range of market expectations.
The previously highlighted operational weaknesses in the Piling
Division are being addressed, with the margins improving in Q4, as
expected. A new, experienced director of the Piling Division will
join in early June 2019. Further streamlining and business
simplification across the Group has resulted in annualised cost
savings ahead of targets previously announced.
In addition, cash management has been good and will result in
net debt at year-end improved against previous forecasts and below
the GBP5.6m reported at the end of H1.
Looking ahead, the fourth quarter run-rate is expected to remain
solid into the forthcoming year, as recently secured contracts
mobilise and with ongoing enquiry levels remaining strong.
Reflecting the improved commercial approach, which is focussed on
longer term partnerships, the Group has a record current order book
of GBP35m (April 2018: GBP25m) and is preferred bidder on a further
GBP25m of contracts. This includes approximately GBP10m of Smart
Motorway schemes, secured in the fourth quarter, and a record order
book of GBP12m in the housing sector for the Group's integrated
piling and foundation solutions for national housebuilders.
Despite the uncertain market conditions, the Board is very
encouraged that the improvement actions being taken are generating
tangible operational and commercial benefits. The momentum entering
the new year underpins the Board's confidence in the prospects for
the Group
For further information please contact:
Instinctif Partners (Financial Public Tel: 020 7457 2020
Relations)
Mark Garraway
James Gray
Rosie Driscoll
Peel Hunt LLP (Nominated Adviser and Tel: 020 7418 8900
corporate broker)
Charles Batten
Mike Bell
Justin Jones
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation. Upon the publication of this
announcement via Regulatory Information Service, this inside
information is now considered to be in the public domain
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTLIFLESVIRFIA
(END) Dow Jones Newswires
April 26, 2019 02:01 ET (06:01 GMT)
Van Elle (LSE:VANL)
Historical Stock Chart
From Jul 2024 to Jul 2024
Van Elle (LSE:VANL)
Historical Stock Chart
From Jul 2023 to Jul 2024