Van Elle profits up 15% on 'positive' first-half trading

Geotechnical engineering contractors Van Elle Holdings saw "positive" trading over the first half of its financial year, increasing pre-tax profit roughly 15% with the board expecting to report a turnover in the vicinity of £53m.

Van Elle witnessed a strong performance from its general piling division during the period as it benefitted from an enlarged range of rigs and techniques that pushed divisional revenue above that of the prior year's first half.

In the six months leading to 31 October, the group's Smartfoot foundation continued to gain share in the market, with operating performance reflecting the benefits of expanded manufacturing capacity.

The firm said ground services revenues had been "encouraging", although it noted that margins had been impacted by "remedial works" carried out in its ground stabilisation operating unit.

Van Elle's specialist piling division did see more mixed results due to "challenging" market and operating conditions in its rail business.

While rail turnover was considered to be "reasonable", the divisional result was projected to be a year-on-year loss, although the firm noted that margin performance had improved during the second quarter of trading and should return to "satisfactory levels" throughout the second half.

Van Elle noted it had a "seasonal weighting towards a stronger second half" with the board expecting that trend to continue throughout the year.

"As the group enters H2, enquiry levels are encouraging and the current order book as at November remains strong," Wednesday's investor note read.

"The board continues to monitor market conditions closely and whilst mindful that the group is subject to clients' decisions regarding contract call-off timing, its expectations for the full year remain unchanged," it added.

As of 0930 GMT, shares had gained 1.27% to 80.00p.