Piling specialist Van Elle is planning further wave of job cuts and cost-saving measures as it faces lower levels of demand from housing and infrastructure.
In a year-end trading statement this morning, chief executive Mark Cutler said revenue would be 6% down on the previous year at £140m, including five months contribution from the acquisition of Rock & Alluvium.
He said Van Elle had identified a range of further cost-saving measures, consisting of headcount reductions and efficiency projects, with targeted annualised savings of more than £1m.
Cutler said an early focus last year on controlling costs meant that Van Elle would report profit before tax in line with market expectations.
He added the firm maintained a conservative outlook on the timing of a full recovery in the housing sector, but had seen early signs of progress with order intake and rig utilisation increasing over the last three months.
Also Van Elle is developing a strong position in the water and energy sectors, which are both expected to contribute materially to activity levels from 2026 and beyond.
The piling specialist will commence its first major energy transmission scheme next year with further tender opportunities expected this year. It is also designing modular foundation solutions for several customers ahead of AMP8 in the water sector.
Van Elle was awarded new frameworks recently including Network Rail’s CP7 civils and geotechnical programme, the Coal Authority for national ground investigation services and for key customers in the energy sector.
The order book at now stands at £37m, just ahead of £31m a year before.
Net cash decreased to £5.5m from £7.5m reflecting increased investment in the year.
