UK: Van Elle loses 5% turnover because of delays

The piling contractor’s profit is lowered this year as several expected contracts in rail sector have been delayed.

Van Elle, the English piling and ground engineering contractor, has declared this morning that a 5% loss on its full-year revenue is expected. Indeed, since February the company has met issues to start several work sites on time. Some contracts in rail sector constrained Van Elle to begin undertaking before the 30th April, that being the end of its financial year.

Van Elle updated the City: “As a result, the board now expects to deliver full year revenue of approximately £93m, some 5% below its previous expectations, with the group’s underlying operating margin slightly reduced as a result of the adverse mix impact.”

Therefore, the group margin plans to be reduced too.

The contractor’s announcement also said: “Looking ahead, Van Elle continues to be optimistic about the long term opportunity within its rail business, given the ongoing need for maintenance of the UK track network as well as significant capital programmes such as track-bed stabilization and the electrification of major routes.”