Van Elle warns of pre-tax loss as a result of Covid-19

Piling and rail infrastructure company Van Elle said on Thursday that market conditions during April were consistent with revised planning assumptions but cautioned that the Covid-19 pandemic had dragged it into the red.

Van Elle said group revenues for the year were down approximately 4% to about £85m, but warned that "the significant, adverse impact" of Covid-19 on the final six weeks of the year had hurt full-year profitability and stated it now expects to report an underlying pre-tax loss for the year.

The AIM-listed group highlighted that its performance during the period reflected the closure of many customer sites, particularly across the housing and regional construction sectors, together with considerable supply chain and logistical disruption.

However, while Van Elle said it did not believe it was appropriate to reinstate full-year guidance, the group reported that following government guidance regarding a return to work across the wider construction sector, customer activity levels within the firm were now beginning to increase.

Chief executive Mark Cutler said: "It is encouraging to see a gradual return to work underway across our markets. We hope to see this trend continue in the coming weeks and are working with customers to support their plans."

As of 1110 BST, Van Elle shares were up 4.03% at 37.45p.