- FY26 profits to disappoint
- ‘Challenging’ market conditions continue
- Strong £47.3 million order book
Shares in Van Elle (VANL:AIM) plunged 11% to 33p after the engineering contractor warned profits for the year ending 30 April 2026 are expected to be ‘materially’ below both market expectations and last year’s haul.
This marked the piling specialist’s second profit warning in the current calendar year, the Nottinghamshire-headquartered company having coughed up an alert in March ahead of its 2025 financial results.
Van Elle pinned the blame for the latest warning on the ‘challenging trading conditions’ which have persisted into its new financial year, although management still sees the medium-term outlook for the business as ‘positive’.
VAN ELLE OF A WARNING
For the uninitiated, Van Elle was formed in 1984 and floated on AIM in 2016 and provides a variety of ground engineering techniques and services including ground investigation, general and specialist piling, rail geotechnical engineering, modular foundations, and ground improvement and stabilisation services.
In a short trading update, the company warned the improvement across its core sectors management has been waiting for has ‘yet to materialise’ amid spending constraints and delays to contract starts across all sectors, but particularly related to BSA (Building Safety Act) approvals for high-rise residential buildings.
As a result, year-to-date revenues have not ticked up as anticipated, leaving the low-margin contractor to downgrade guidance accordingly.
Back in July, Van Elle delivered disappointing results for the year to April 2025 showing turnover down 6% to £130.5 million and underlying pre-tax profits falling from £6.7 million to £5.3 million after key contract starts were pushed back due to slow BSA approvals.
ROBUST ORDER BOOK
However, the Mark Cutler-led company has continued to win important new framework agreements and partnerships.
In today’s update, Van Elle insisted the medium-term outlook for the business remains ‘very positive’ with significant opportunities in the growing energy and water sectors, where good early progress is being made.
Van Elle also called attention to its strong order book worth £47.3 million as at 31 July 2025, up from £41.5 million as of 30 April 2025.
