Van Elle makes 'good' progress with transition plan

Geotechnical engineering company Van Elle continued to make "good progress" on its transition plan in terms of improved operational efficiency and a "more effective commercial approach".

Van Elle noted that it had experienced "a level of uncertainty in its markets", particularly in the infrastructure sector, in the latter part of the year, meaning that, despite encouraging progress in winning work, some contract award and start dates had been delayed by customers.

As a result, whilst volumes in the fourth quarter were the strongest of the year to date, Van Elle now anticipates sales for the full-year will fall short of levels previously expected by around 3%.

"This reduction in forecast sales for the current year is expected to result in the group delivering full-year adjusted PBT slightly below the lower end of the range of market expectations," warned Van Elle.

Elsewhere, operational weaknesses in Van Elle's piling unit were addressed, with margins improving in the fourth quarter. The AIM-listed outfit also said further streamlining and business simplification work across the group had resulted in annualised cost savings ahead of its own targets.

Looking forward, despite the uncertain market conditions, Van Elle was "very encouraged" that the improvement actions being taken were generating "tangible operational and commercial benefits".

As of 0955 BST, Van Elle shares had shot up 10.02% to 48.96p.