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Van Elle Holdings PLC on Friday said results for the half year ended October 31 are in line with its expectations due to a ‘resilient’ performance, and announced the completion of its acquisition of Rock & Alluvium Ltd.
The Kirkby-In-Ashfield, England-based ground engineering contractor said it expects to report revenue of approximately £68 million for the first six months of financial 2024, a decrease from £80.8 million a year ago. Meanwhile, it expects its operating margins to be consistent with the prior year at 3.9%.
Van Elle added that its balance sheet remains strong, citing net funds of £8.9 million as at October 31.
Looking ahead, it said that it expects its full-year results to be in line with market expectations, which forecasts an underlying pretax profit of £5.0 million. Last year, Van Elle reported pretax profit of £5.4 million.
On Friday, Van Elle also announced that it had completed the acquisition of the entire issued share capital of UK-based piling specialist Rock & Alluvium from Galliford Try Holdings PL, for total consideration of up to £3.8 million. The acquisition was first announced in late October.
Van Elle had said Rock’s piling rig fleet complements its existing capital investment programme. The consideration comprises of an initial £1.8 million payment followed by a deferred payment of £2.0 million payable 12 months from completion. Payments will be satisfied through its existing cash and banking facilities.
Van Elle also says it has entered a five-year trading agreement with Galliford Try, which it expects to generate over £10 million in revenue per year.
Shares in Van Elle were down 1.1% at 36.10 pence each in London on Friday midday.
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