Analyst Briefing and Investor Presentation
Van Elle Holdings plc, the UK’s largest ground engineering contractor, announces its unaudited interim results for the six months ended 31 October 2024 (the ‘Period’).
(1) Underlying EBITDA is defined as earnings before interest, tax, depreciation and amortisation.
(2) IFRS 16 property and vehicle lease liabilities as at 31 October 2024 were £7.4m (31 October 2023: £7.0m).
Period Highlights
Continued resilience with growing signs of improvement across end markets despite macroeconomic backdrop and challenging market conditions.
Revenue remained reasonably stable at £65.2m, a decrease of 4% compared to the prior year (H1 FY2024: £68.2m).
Underlying EBITDA consistent with previous year at £6.2m. Depreciation increased by £0.6m due to higher asset base from recent business acquisitions and continued capital investment.
Strong performance in Specialist Piling and Rail, offset by weaker volumes in General Piling and Ground Engineering Services.
Acquisition of Albion Drilling Group in October 2024 expanded the Group’s technical capabilities and presence in Scotland, bolstering progress in the energy sector.
Further progress in positioning the Group to benefit from attractive growth sectors.
Despite further delays to the ONxpress delivery programme, Van Elle Canada has been awarded additional contracts for the Metrolinx rail network upgrade programme in Toronto.
Named as a delivery partner for Network Rail’s Southern region 10-year building and civils minor works framework.
Housing sector recovering with orders 52% higher than H1 FY2024.
Improved operational efficiency and right-sized cost base have positioned the Group well to take full advantage of anticipated end market recoveries.
Net funds decreased to £3.1m (excl. IFRS 16 lease liabilities), impacted by investment for growth in capital equipment and acquisitions, and delayed receipts from HMRC in relation to the Group’s R&D tax claim.
Interim dividend declared of 0.4 pence per share, consistent year on year.
Outlook
Market conditions remain challenging in several sectors. Housing is showing signs of recovery and, despite the slow start to Control Period 7, our rail activities are increasing due to our diverse spread of customer relationships and ongoing TransPennine Route upgrade works.
Secured or preferred bidder positions on several key major projects which are expected to commence in Q4.
We expect several delayed projects in London and the South East to proceed once the Building Safety Act approval delays are unblocked during 2025.
Our strong position in energy and water is expected to yield materially increased volumes from FY26 onwards as current design phases develop towards project starts.
Continuing to build upon the solid pipeline, with order book up 24% to £43.4m at 31 December 2024 (£35.1m at 30 April 2024), excluding framework agreements and preferred bidder positions.
Assuming continued strengthening of the Group’s end markets, the Board remains confident in achieving market expectations for the full year1.
(1) Company compiled analyst consensus for FY2025 underlying profit before tax is £6.0m.
Mark Cutler, Chief Executive, commented:
“The Group has faced another challenging period, however, it has continued to make significant strategic progress, positioning Van Elle in attractive end markets and strengthening its core offering to deliver for clients. We have been focussed on driving operational efficiencies and have a right-sized cost base, appropriate to the current levels of demand.
“The acquisition of Albion Drilling has accelerated our expansion into both Scotland and the Energy sector and broadened our specialist capabilities, while Specialist Piling activity levels notably increased in the Period. The Group as a whole has continued to secure a solid pipeline of future work, including several targeted key contract wins. Alongside the increase in volumes experienced in our Housing Division, our other key markets are expected to continue improving over the coming months, and coupled with a strong order book, we remain confident in delivering a full year performance in line with market expectations.”
Analyst Briefing: 10.00am on Wednesday 29 January 2025
An online briefing for Analysts will be held at 10.00am today. Analysts interested in attending should contact Walbrook PR on vanelle@walbrookpr.com or 020 7933 8780.
Investor Presentation: 3.30pm on Wednesday 29 January 2025
Mark Cutler, Chief Executive Officer, and Graeme Campbell, Chief Financial Officer, will hold a presentation to review the results and outlook at 3.30pm today. The presentation will be hosted through the digital platform Investor Meet Company.
Investors can sign up to Investor Meet Company for free and add to meet Van Elle Holdings plc via the following link https://www.investormeetcompany.com/van-elle-holdings-plc/register-investor. Investors who have already registered and added to meet the Company will automatically be invited.
Questions can be submitted pre-event to vanelle@walbrookpr.com or in real time during the presentation via the "Ask a Question" function.
The full announcement is available here: https://www.londonstockexchange.com/news-article/VANL/interim-results-analyst-briefing-investor-pres/16873933
###
Joseph Walker
Associate
D: +44 (0)20 7933 8780
75 King William Street
London EC4N 7BE