19th Nov 2021 10:08
(Alliance News) - Van Elle Holdings PLC on Friday said it expects to report double-digit growth in revenue for the first half of its financial year, giving the company confidence of its annual performance meeting market expectations.
For the six months ended October 31, the Nottinghamshire, England-based geotechnical engineering contractor said that, with strong activity levels in most of its divisions, revenue is set to rise by 56% to around GBP60 million from GBP38.3 million a year before.
This figure also reflects a 24% outperformance over pre-Covid levels. Revenue for the six months that ended October 2019 was GBP48.5 million.
Van Elle's order book as at the end of last month was GBP34.5 million, dipping from GBP34.7 million at August 9
Within Van Elle, residential construction reported the highest activity levels, while the rail business lagged behind the other segments. However, rail experienced an improvement in enquiries and contract activity towards the end of the first half, which is set to continue in the second half, Van Elle said.
However, the company said it is still contending with supply chain issues, salary inflation and short-term employee availability, which have been 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," Van Elle stated.
Looking ahead, Van Elle said it remains confident that its performance in the current financial year will be in line with market expectations.
Van Elle will post its interim results on January 31, 2022.
Shares in Van Elle were up 4.0% at 44.19 pence on Friday in London.
By Dayo Laniyan; [email protected]
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