Widespread project delays are hitting profits at Van Elle, the Nottinghamshire-based ground engineering contractor has revealed in a new trading update for the year ending 30 April 2025.
In interim results the company shared that market conditions had proved challenging. Despite benefitting from a strong order book, the trading environment and volumes remained supressed throughout January and February.
The business has seen widespread project delays, including the ongoing impact of delays to Building Safety Act approvals. These have primarily impacted trading for Rock & Alluvium, which is focused on taller residential schemes in London and the Southeast.
With over 40 projects currently in the approvals process, the majority of these are now expected to commence in FY26 and will result in a FY25 performance for Van Elle’s UK operations slightly below expectations.
At Van Elle Canada, meanwhile, further delays have been experienced as a strategic supply partner to the major infrastructure upgrade programme for the Toronto rail network. The division’s trading performance will now be weaker than anticipated.
While Van Elle has secured several key frameworks throughout FY24 and FY25 in Canada, with near-term uncertainty around the timing of key investment programmes, the business is reviewing its strategic options with its Canada operations.
As a result of the impact of the Rock & Alluvium and Canada trading performance, Van Elle now expects underlying profit before tax for the second half of FY25 to be similar to the first half.
