Business
Trading Update & Notice of Results
Trading Update & Notice of Results.
About this update from Van Elle Holdings Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 8993S\n Van Elle Holdings PLC\n 19 November 2021\n \n \n \n \n \n Van Elle Holdings plc\n \n \n ('Van Elle', the 'Company' or the 'Group')\n \n \n \n \n \n Trading Update\n \n \n & Notice of Results\n \n \n \n \n \n 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 2021 (the 'Period') ahead of announcing its half-year results, which are expected to be released on Monday 31 January 2022.\n \n \n \n \n \n Strong activity levels have continued in most divisions, leading to significantly increased revenues of approximately £60m in the Period. This represents a 56% increase over the prior year comparative period (HY21: £38.3m) as well as a return to growth over pre-Covid comparative revenues, with run rates exiting the Period showing good capacity usage across all divisions. As expected, recovery in Rail volumes continued to lag the other segments, with residential construction showing the highest activity levels. Encouragingly, the Rail business has seen an improvement in enquiries and contract activity towards the end of the Period, which is expected to continue in the second half.\n \n \n \n \n \n The Group has continued to experience the effects of industry-wide supply chain challenges, salary inflation and short-term employee availability. These challenges continue to be mitigated at an operational level. Management is focused on improving its margin mix and remains confident that the strong market recovery and divisional performance will underpin an improved outlook.\n \n \n \n \n \n Good progress continues to be made in the delivery of strategic actions including work winning activity in the infrastructure and housing sectors which underpin the medium-term financial targets outlined in previous updates.\n \n \n \n \n \n Cash as at 31 October 2021 was £6.3m (30 April 2021: £8.5m). The decrease in cash reflects an increase in working capital due to higher activity levels and rig purchases which have been financed from cash reserves. The Group has also further reduced its hire purchase debt during the Period.\n \n \n \n \n \n The Group's order book at 31 October 2021 was £34.5m (9 August 2021: £34.7m).\n \n \n \n \n \n The Board is pleased wit...