{"id":823195,"date":"2025-01-31T07:11:49","date_gmt":"2025-01-31T13:11:49","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/01\/31\/van-elle-profit-surges-despite-10-turnover-dip\/"},"modified":"2025-01-31T07:11:49","modified_gmt":"2025-01-31T13:11:49","slug":"van-elle-profit-surges-despite-10-turnover-dip","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/01\/31\/van-elle-profit-surges-despite-10-turnover-dip\/","title":{"rendered":"Van Elle profit surges despite 10% turnover dip"},"content":{"rendered":"
\n

\"Van-Elle.jpg\"<\/p>\n

\n

Pre-tax profit at ground engineering specialist Van Elle Ltd rose by 30 per cent last year, although \u201csofter market conditions\u201d reduced the firm\u2019s turnover.<\/p>\n

Accounts for the year to 30 April 2024 show that the firm recorded a profit of \u00a37m compared with \u00a35.4m the previous year.<\/p>\n

But turnover dropped by 10 per cent year on year from \u00a3148.7m to \u00a3133.6m. \u201cThe reduction in revenue was driven primarily by softer market conditions,\u201d directors said in the accounts.<\/p>\n

They added that the housing and infrastructure sectors were each affected by \u201clower levels of demand and project delays throughout the financial year\u201d.<\/p>\n

The firm was ranked second\u00a0in the CN Specialists Index<\/a> for ground engineering last year.<\/p>\n

Market conditions and investment delays affected Van Elle more in the first half of its financial year. \u201cIn Q4 [the fourth quarter], revenues were particularly strong and ahead of Q4 in the previous financial year,\u201d directors said.<\/p>\n

The firm\u2019s profit margin broadened from 3.6 to 5.2 per cent. Directors attributed this primarily to \u201cbetter contract execution across divisions\u201d, and to subdued activity in the housing sector that tends to deliver lower margins.<\/p>\n

Both rail and highways sectors reported lower activity levels during the year. \u201cRail was impacted by lower spending during the final year of Network Rail\u2019s CP6 investment period,\u201d the accounts stated.<\/p>\n

The firm still won a place on Network Rail\u2019s southern region CP7 civils framework.<\/p>\n

Highways revenue was also reduced, impacted by the cancellation of the smart motorways programme, other project cancellations and delays in regional delivery programmes.<\/p>\n

Directors also described \u201cchallenging\u201d conditions in the regional construction sector, with developer confidence affected by build cost inflation and delays to commercial schemes in most regions.<\/p>\n

Cash at bank fell from \u00a38.8m to \u00a35.7m, but the firm held no short-term or long-term repayable bank loans, compared with \u00a3830,000 and \u00a3328,000 respectively the previous year.<\/p>\n

Van Elle paid a lower dividend of \u00a3979,000 compared with \u00a32.1m the year before.<\/p>\n

The firm\u2019s headcount fell slightly from a monthly average of 648 to 639 employees.<\/p>\n

\u201cSome inflationary pressures have continued to affect the cost base, particularly through wage inflation,\u201d directors said. \u201cCost saving measures and efficiency projects are being implemented where possible.\u201d<\/p>\n

The accounts show that the annual wage bill fell from \u00a335.9m to \u00a335m.<\/p>\n

Looking ahead, directors said they expect market conditions to remain difficult, despite lower inflation and more stable interest rates.<\/p>\n

But they still expect \u201cfurther steady progress\u201d in Van Elle\u2019s performance in the current financial year \u201cahead of accelerated growth in FY2026 and FY2027\u201d.<\/p>\n

Directors foresee increased investment in water, rail and roads over the next five years \u201calong with significant new investment in the UK\u2019s energy transmission network\u201d.<\/p>\n

Here, the accounts mentioned that the firm had \u201cdeveloped strong customer partnerships for delivery of future works\u201d in the UK energy sector\u2019s Accelerated Strategic Transmission Investment programme<\/a>.<\/p>\n

A \u201cstrong pipeline of opportunities\u201d has also been developed in the water sector, \u201cwhere there is a clear pipeline of planned investment\u201d.<\/p>\n<\/div>\n<\/div>\n

Read More<\/a>
\n Ben Vogel<\/p>\n","protected":false},"excerpt":{"rendered":"

Pre-tax profit at ground engineering specialist Van Elle Ltd rose by 30 per cent last year, although \u201csofter market conditions\u201d reduced the firm\u2019s turnover. Accounts for the year to 30 April 2024 show that the firm recorded a profit of \u00a37m compared with \u00a35.4m the previous year. But turnover dropped by 10 per cent year<\/p>\n","protected":false},"author":1,"featured_media":823196,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23002,22203],"tags":[],"class_list":{"0":"post-823195","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-profit","8":"category-surges"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/823195","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=823195"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/823195\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/823196"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=823195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=823195"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=823195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}