Van Elle Delivers Stable Margins Amid Challenging Conditions
Why we think this is good
The trading update from Van Elle Holdings indicates that the company has faced challenging market conditions, with revenue expected to be 4% below the previous year. However, the company has delivered stable gross margins and undertaken cost-saving initiatives, resulting in an expected underlying profit before tax of approximately £3.5m. The company's balance sheet remains strong, with significant liquidity headroom, and it has secured new customer partnerships in the energy and water sectors, providing growth opportunities. While the performance is not significantly ahead of expectations, the company has demonstrated resilience in the face of market challenges.
Key Points
- Group revenue expected to be 4% below previous year
- Stable gross margins and cost-saving initiatives
- Underlying profit before tax expected to be £3.5m
- Strong balance sheet with £1.0m net cash and £6.5m available on £8.0m funding facility
- Order book has grown to £41.5m as of 30 April 2025
- Secured two new customer partnerships in energy and water sectors
Summary
Van Elle Holdings, the UK's largest ground engineering contractor, has provided a trading update for the 12 months ended 30 April 2025. Group revenue is expected to be 4% below the previous year, reflecting challenging market conditions and delays to contract start dates. However, the company has delivered stable gross margins and undertaken cost-saving initiatives, resulting in an expected underlying profit before tax of approximately £3.5m. The balance sheet remains strong, with net cash of £1.0m and £6.5m available on its £8.0m funding facility, providing significant liquidity headroom. The order book has grown to £41.5m as of 30 April 2025, and the company has secured two new customer partnerships in the energy and water sectors.