Van Elle, the Nottinghamshire-based groundworks company, has issued a profit warning, citing project delays and a weak market. The company attributes disruptions to stalled Building Safety Act approvals, affecting its Rock & Alluvium division, which specialises in high-rise residential projects in London and the South East. Over 40 projects are awaiting approval, with most now expected to start in FY26, pushing Van Elle’s FY25 UK performance below expectations.
In addition, the company is reassessing its presence in Canada after further delays on Toronto rail network upgrades. While Van Elle has secured key frameworks in the region, near-term uncertainty around major investment programmes has prompted a strategic review of its Canadian operations.
Due to these setbacks, Van Elle expects its underlying profit before tax for H2 FY25 to align with H1. The company is now focused on managing working capital, streamlining costs, and disposing of non-core assets to strengthen its balance sheet.
Despite challenges, Van Elle’s General Piling division has secured several large projects scheduled for early FY26. The company expects increased workloads in March and April, and optimism for FY26 is driven by anticipated improvements in the housing market, continued investment in the energy and water sectors, and the UK government’s commitment to accelerating infrastructure spending. However, the board cautions that market recovery may take longer than initially forecast.
