Van Elle LON:VANL the AIM-listed engineering contractor, released its annual financial report for the year ending 30th April 2022 yesterday (3rd August). With revenue reaching GBP 124.9m, up almost 50% from the year prior, the Nottinghamshire-based firm saw a return to profit for the first time since 2019. The news comes after record activity levels and following strategic targeting of structurally growing end markets, which have become an increasingly important part of Van Elle’s businesses following the Covid-19 pandemic.
Geotechnical expertise
Founded in 1984, and listed on AIM in late 2016, Van Elle has grown to become one of the UK’s largest and most diverse ground engineering contractors. The company offers a wide range of specialist geotechnical techniques and services to customers in a variety of construction end markets. Van Elle’s end-to-end solutions encompass ground investigation, general and specialist piling, rail engineering services, modular foundations and ground improvement and stabilisation services in a wide range of environments.
The company is focused on three core UK market sectors – residential, infrastructure and construction – offering a full range of integrated ground engineering services on both a regional and national basis. Van Elle’s work in the residential market is focused on building integrated piling and foundation systems for national and regional house builders, retirement and multi-storey residential units, whilst the business also provides specialist ground engineering services to the rail, coastal and energy and utility sectors through its infrastructure department.
Return to profit
Van Elle’s annual financial report revealed that revenue rose to GBP 124.9m, up from GBP 84.4m the previous year. This increase in turnover led to the company posting a pre-tax profit of GBP 3.6m – a significant improvement from the GBP 1.4m loss suffered in 2020/21 and GBP 2.5m loss the year before.The company reported high growth across all divisions, notably in higher margin Specialist Piling, Rail and Ground Engineering Services. All three of Van Elle’s core UK market sectors experienced an annual revenue growth of over 43% (Residential: 43%, Infrastructure: 52%, Regional Construction: 51%). Mark Cutler, chief executive of Van Elle, said: “[…the results] demonstrate the positive progress the group is making under its transformation strategy launched in 2019”.
Operationally, the firm claims that, although supply chain challenges have impacted operations and contract margins over the past financial year, it is trading well ahead of pre-pandemic levels. Van Elle has also been appointed to the Smart Motorways Programme Alliance and Transpennine Route Upgrade frameworks which have coincided with further expansions in its operational capabilities in sheet piling, vibro and rigid inclusions.
Building sustainable new foundations
The construction sector has been in full flow since the UK government’s decision to remove previously imposed Covid-19 restrictions. On both a national and regional level, infrastructure development has been in high demand from corporations and local authorities, as they look to get back on track in the coming years. In light of Van Elle’s financial report, it is expected that this heightened demand will help the company to continue to generate consistent cash flows through its operations both in the short- and long-term.
Furthermore, Van Elle is expanding beyond its current operations. In April 2021, the company acquired foundations specialist ScrewFast, with the subsidiary contributing to headline revenue in the latest results for the first time and strengthening the group’s position in its growth markets. Aaron Morby, editor of Construction Enquirer, said that the company is now “confident of achieving its mid-term financial targets of 5-10% annual revenue growth, 7-8% operating profit margin and 15-20% ROCE”.
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