On the plus side, Van Elle鈥檚 order book is at a record high and the restructuring announced in January is bearing fruit.
Van Elle鈥檚 financial year runs to 30th April. In a trading update today, the board said: 鈥淭he group has experienced a level of uncertainty in its markets, particularly in the infrastructure sector, in the latter part of the year. This has meant that, despite encouraging progress in winning work, some contract award and start dates have been delayed by customers. As a result, whilst volumes in the fourth quarter have been the strongest of the year to date, sales for the full year are expected to fall short of levels previously expected by circa 3%. This reduction in forecast sales for the current year is expected to result in the group delivering full year adjusted PBT [profit before tax] slightly below the lower end of the range of market expectations.鈥�
It added: 鈥淭he previously highlighted operational weaknesses in the Piling Division are being addressed, with the margins improving in Q4, as expected. A new, experienced director of the Piling Division will join in early June 2019. Further streamlining and business simplification across the group has resulted in annualised cost savings ahead of targets previously announced.
鈥淚n addition, cash management has been good and will result in net debt at year-end improved against previous forecasts and below the 拢5.6m reported at the end of H1.鈥�
The order book is at 拢35m (April 2018: 拢25m) and Van Elle is preferred bidder on a further 拢25m of contracts. This includes approximately 拢10m of smart motorway schemes, secured in the fourth quarter, and 拢12m of work in the housing sector.
The statement concluded: 鈥淒espite the uncertain market conditions, the board is very encouraged that the improvement actions being taken are generating tangible operational and commercial benefits. The momentum entering the new year underpins the board's confidence in the prospects for the group.鈥�
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