Van Elle Holdings’ interim results for the six months ended 31st October 2023 show revenue down 16% at £68.2m and pre-tax profit down 24% at £2.5m.
Results were impacted by the slow-down in the house-building market and delays to infrastructure projects starting, both of which were the result of rising interest rates pushing up costs.
However, progress has been made on growth opportunities in the energy and water sectors, the board said, where investment is forecast to grow significantly over the long term.
The second half of the financial year will benefit from the start of work on the retrofit safety measures as a framework partner on the smart motorway programme alliance are scheduled to commence in H2 FY2024.
The recent acquisition of Rock & Alluvium from Galliford Try took place on 30th November 2023, so did not contribute to first-half results.
Chief executive Mark Cutler said: "These results represent a resilient performance in the face of expected challenging market conditions throughout FY2024, reflecting the benefits of the group's diversified end-market exposure. Despite the anticipated lower revenues, operating margin has been maintained at FY2023 levels, our balance sheet is stronger, and our future prospects are more compelling. We are very pleased with the acquisition of Rock & Alluvium shortly after the period end. The group is developing a strong market position in the energy and water sectors and is well placed to benefit from a recovery in activity levels in housing, construction, rail and highways in FY2025."
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