Van Elle Holdings PLC Half Year Trading Update (8906J)
December 10 2018 - 1:00AM
UK Regulatory
TIDMVANL
RNS Number : 8906J
Van Elle Holdings PLC
10 December 2018
10 December 2018
Van Elle Holdings plc
("Van Elle" or the "Group")
Half-year trading update
Van Elle, the leading geotechnical engineering company offering
a wide range of specialist foundation solutions and techniques to
customers in a variety of UK construction end markets, is issuing
the following trading update ahead of announcing its interim
results for the six months ended 31 October 2018 on 16 January
2018.
As reported at the time of the full year results, on 25 July
2018, the first quarter of the current year was relatively quiet as
a result of subdued UK market conditions following a challenging
period for the UK construction markets in early 2018. As
anticipated, market conditions have been more supportive in the
second quarter and new contract starts have progressively gained
momentum. Consequently, the Board expects to report turnover of
approximately GBP43.0m for the period, against a strong comparative
period in the prior year (H1 2017: GBP52.6m). Expected underlying
PBT of GBP2.8m (H1 2017: GBP5.4m) for the first half reflects the
subdued activity levels in the first quarter but pleasingly gross
margins have continued to improve over the period.
This year is an important one of transition for the Group, with
our new Chief Executive, Mark Cutler, having joined the Board in
August. Mark has focussed on refining the Group's strategic client
relationships, strengthening the leadership team and streamlining
the operational structure to establish a stronger platform from
which to pursue our growth strategy. In addition to enhancing the
Group's effectiveness, the operational restructuring to date is
expected to generate annualised cost savings of approximately
GBP0.6m. A provision of GBP0.3m has been included at the half year
for exceptional restructuring costs relating to this.
Net debt has reduced in the period (standing at GBP5.6m at 31
October 2018 compared to GBP5.9m at year end 2017) and is expected
to reduce further over the second half.
The quiet first quarter, together with the relatively weak
second half of the prior year, means that the Group's results are
likely to have a greater second half weighting in the current year.
The positive momentum exiting the first half has continued into the
start of the third quarter and the Group's orderbook at 31 October
2018 was 16% ahead of last year at GBP32m (H1 2017: GBP27.6m),
including strong demand for our specialist services over the
Christmas period. The Board continues to monitor market conditions
closely and whilst mindful of the strong second half performance
required, expects the company to deliver a full year performance
similar to that of last year.
Mark Cutler, Chief Executive, commented:
"Since joining the business in August I have been taking action
to refine the Group's commercial approach, streamline operations,
strengthen the leadership team and re-focus on our key customers.
This is already creating a strong platform from which to pursue our
growth strategy. It is pleasing to see momentum building into the
third quarter with growing demand for our specialist services and a
strong orderbook providing good forward visibility. The Group is
well placed to benefit from the significant opportunities we see in
the second half and beyond."
Enquiries:
Van Elle Holdings plc 017 7358 0580
Mark Cutler, Chief Executive Officer
Paul Pearson, Chief Financial Officer
Instinctif Partners (Financial Public
Relations) 020 7457 2020
Mark Garraway
James Gray
Rosie Driscoll
Peel Hunt LLP (Nominated Adviser and corporate
broker) 020 7418 8900
Charles Batten
Mike Bell
Justin Jones
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END
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