Van Elle Holdings PLC Trading Update & Notice of Results (0128H)
01 December 2020 - 6:00PM
UK Regulatory
TIDMVANL
RNS Number : 0128H
Van Elle Holdings PLC
01 December 2020
Van Elle Holdings plc
("Van Elle", the "Company" or the "Group")
Trading Update
& Notice of Results
Van Elle Holdings plc (AIM: VANL), the UK's largest ground
engineering contractor, today provides a trading update for the six
months ended 31 October 2020 (the "Period") ahead of announcing its
half-year results, which are expected to be released on Wednesday
20 January 2021.
Trading during the first quarter was heavily disrupted by
Covid-19, following a low point in April 2020 (the final month of
FY2020) in which 80% of revenues were lost. Activity levels
steadily recovered during the Period, slightly ahead of
management's planning assumptions. Revenues in September and
October reached pre-Covid levels, enabling the Group to trade
profitably, albeit the rate of recovery in demand has not been
uniform across end market segments. Specialist Piling has shown the
strongest recovery in the Period, whilst activity in the Rail
division remains subdued. Housing and General Piling have also
recovered steadily, although the latter continues to experience
some market volatility.
Encouragingly, the current lockdown restrictions have enabled
the Group and its customers to maintain operations in most
instances. Consequently it is expected that, subject to normal
seasonal patterns, the steady recovery trends in the infrastructure
and housebuilding markets, described above, will continue into the
second half. Increased uncertainty has impacted customer decision
making in the commercial and general construction markets in
November and so the Board is cautiously expecting activity in
General Piling to be subdued during the third quarter, with a
sustained recovery as the post-Covid backdrop stabilises.
The Group expects, subject to completion of the interim audit
review, to report first half revenues of c.GBP38m (H1 2020:
GBP48.5m), reflecting the adverse impact of the first quarter.
Net funds, excluding IFRS 16 property lease liabilities, at 31
October 2020 was GBP4.6m (31 October 2019: net debt of GBP6.4m).
The Company's cash position at 31 October 2020 was GBP9.8m, which
was impacted by an increase in working capital requirements due to
the stronger revenue recovery in September and October. With the
current cash position and the undrawn ABN AMRO Commercial Finance
facility of up to GBP11m, the Group continues to remain
well-positioned to trade through this period of recovery and take
advantage of opportunities as its markets return to normality.
Notice of Results:
Van Elle expects to announce its half-year results on Wednesday
20 January 2021. A briefing for Analysts will be held at 9.30am on
the morning of the results. Analysts interested in attending should
contact Walbrook PR on vanelle@walbrookpr.com or 020 7933 8780.
Enquiries:
Van Elle Holdings plc Via Walbrook
Mark Cutler, Chief Executive Officer
Graeme Campbell, Chief Financial Officer
Peel Hunt LLP (Nominated Adviser and Tel: 020 7418 8900
corporate broker)
Mike Bell/Ed Allsopp
Walbrook PR Limited Tel: 020 7933 8780 or vanelle@walbrookpr.com
Tom Cooper/Nick Rome/Nicholas Johnson 07971 221 972 or 07748 325 236
or 07884 664 686
About Van Elle Holdings plc:
Van Elle Holdings is the UK's largest specialist geotechnical
engineering contractor. The Company provides a range of ground
engineering techniques and services including - ground
investigation, general and specialist piling, rail geotechnical
engineering, modular foundations, and ground improvement and
stabilisation services.
Van Elle operates through three divisions: general piling,
specialist piling and ground engineering; and is focused on three
end markets; residential and housing, infrastructure and regional
construction - across which the Group has completed more than
20,000 projects over the last 35 years.
General piling provides a range of larger piling and ground
engineering solutions for open-site construction projects.
Specialist piling provides a range of geotechnical solutions in
operationally constrained environments including on-track rail
applications. Ground engineering services offers a range of ground
investigation and geotechnical services and modular foundation
solutions such as Smartfoot(R). Van Elle has a market-leading
reputation and the UK's largest modern rig fleet of 118 rigs.
Having floated on AIM in 2016 it now has a strong national
presence, diversified offering and market-leading brand name.
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