26th Apr 2019 12:17
LONDON (Alliance News) - Van Elle Holdings PLC said Friday it is making "good progress" in its transition plan and is "very encouraged" in the improvements it has seen.
Shares in the piling and rail infrastructure firm were up 10% in midday trading at 48.98 pence each.
In the current financial year, ending next Tuesday, Van Elle said it experienced a "level of uncertainty", particularly from the infrastructure sector in the latter part of the year.
"This has meant that, despite encouraging progress in winning work, some contract award and start dates have been delayed by customers. As a result, whilst volumes in the fourth quarter have been the strongest of the year to date, sales for the full year are expected to fall short of levels previously expected by about 3%," said the company.
As a result, Van Elle's full year adjusted pretax profit is expected to be slightly below the lower end of market expectations.
In financial 2018, the company reported statutory pretax profit of GBP9.2 million on revenue of GBP103.9 million.
Van Elle said its cash management has been "good", with net debt expected to fall below the GBP5.6 million reported at the end of the company's first half in October.
Going forward, the company's fourth quarter run-rate is expected to remain "solid" heading into the new financial year, with Van Elle citing recently secured contracts and ongoing enquiry levels remaining "strong".
Van Elle said it will focus on longer term partnerships in the future and has a current order book of GBP35 million, ahead of the GBP25 million at the end of the previous year.
Van Elle added: "Despite the uncertain market conditions, the board is very encouraged that the improvement actions being taken are generating tangible operational and commercial benefits. The momentum entering the new year underpins the board's confidence in the prospects for the group."
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