Van Elle first-half profit slumps 55%; downgrades full-year outlook
Source - SMW
Engineering company Van Elle Holdings booked a 55% fall in first-half profit and said its full-year result would miss expectations amid project delays and high overheads.
Pre-tax profit for the six months through December slumped to £2.4m, as revenue fell 18% to £42.9m.
The company reduced its interim dividend by 29% to 1p per share.
In the third quarter, contract margin performance in the general piling division had been weaker than anticipated, while several projects had been delayed.
'As a result and despite good momentum being carried in from the first half, we don't believe we will be able to deliver the significant step up in performance during the second half that we anticipated at the time of our trading statement in December 2018,' chief executive Mark Cutler said
'These challenges have been frustrating, but it is pleasing to see outlook for the final quarter remaining robust and with a strong pipeline of target projects providing good forward visibility.'
'Whilst we are mindful of the wider market environment, we are confident that the initiatives we are taking will develop a strong platform for future strong, profitable growth.'
At 1:24pm: (LON:VANL) Van Elle Holdings Plc share price was -21p at 58.5p