Contractor says piling jobs have helped boost revenue 16% but Building Safety Act approvals continue to impact residential work
Van Elle has announced increased turnover in its half-year results despite ongoing building safety approval delays.
The ground engineering contractor, has today reported turnover of £73.4m for the six months to 31 October, an increase of 16% on the same period year-on-year.
The firm said the rise was driven by general and specialist piling work and rail.
Its operating profit however dropped from £2m to £1.8m and from £2.2m to £2m on an underlying basis.
Van Elle said its underlying operating profit margin of 2.8% was “driven by product mix” and it expects this to improve in the second half of the year as it mobilises complex projects.
The firm also said that Building Safety Act approval delays have continued to impact revenues in the high-rise residential market, “delaying numerous projects and resulting in further losses in H1 in the group’s London operations”.
Mark Cutler, chief executive of Van Elle, said: “We are pleased with the progress made during the first half of the year, and despite the challenges faced in the wider industry, the group is starting to see signs of recovery in its core markets.
“With a strategic focus on increasing exposure to energy and water, alongside early signs of improving housing and residential market confidence, the group is well-positioned to deliver strong growth over the medium term.”
No comments yet