Van Elle profits jumps 50%

Ground-engineering specialist Van Elle has reported an almost 50 per cent rise in profit in its latest financial results, as it posted a record turnover for the second year in a row.

In the year to the end of April 2023, the firm’s pre-tax profit was £5.4m, an increase of 49 per cent on 2022, when it hit £3.6m.

The results build on Van Elle’s return to profit in 2022, when revenue increased from £84.4m to £125m.

This year, annual turnover was up again, rising by 19 per cent to £149m. The firm said this was driven by increased activity across all of its divisions.

Revenue in the past year from the firm’s general piling work rose by 41 per cent, mainly due to “high activity levels on major energy and logistics projects”, chief executive Mark Cutler said.

Meanwhile, Van Elle’s ground-engineering division saw a 32 per cent rise in turnover, boosted by “high demand” from the homebuilding market. Revenue from specialist piling and rail grew by 2 per cent, with delays to highways projects contributing to “softer market conditions”.

The firm said its strong trading had continued into the current financial year, with “all divisions operating at high activity levels”.

Van Elle expects a reduction of activity in the residential market this year and said several infrastructure projects had been cancelled or delayed. But it added that it had an “increasing presence” in the high-voltage power sector and was expanding its rail capabilities geographically.

Non-executive chair Frank Nelson said Van Elle’s board remained confident of achieving its medium-term financial targets, which include 5-10 per cent annual revenue growth.

Cutler commented: “I am delighted to report a strong set of results, building on last year’s excellent progress, as we emerged from the pandemic.

“The actions taken over the last three years are starting to deliver sustainable results that put us firmly on track to deliver our medium-term financial objectives.”