Van Elle Holdings PLC (AIM:VANL) remains confident of meeting City expectations despite challenging markets and rising prices.
In a trading update, the UK's largest ground engineering contractor said the group's results for the six months to 31 October 2023 are in line with the board's expectations.
“This reflects a resilient operational performance despite challenging market conditions, continuing inflationary pressures and delayed project starts,” it said.
The company said it expects to report revenue for the period of around £68 million, down 16% on the year prior, but forecast operating profit margins consistent with the prior year.
It said the balance sheet remains strong, with a net funds position (excluding IFRS16 lease liabilities) of £8.9 million at the period end.
But the firm cautioned there continues to be uncertainty and subdued activity levels in some of its end markets, particularly the housebuilding sector, which is expected to continue into the second half of the financial year.
However, further progress has been made on several substantial growth opportunities in the energy sector.
The order book at 31 October increased to £32.7 million from £30.8 million at the end of April, which excludes framework agreements and preferred bidder positions, providing a strong platform entering the second half.
In addition, Van Elle said it has completed the acquisition of Rock and Alluvium Ltd and expects the deal to be accretive to underlying earnings in the first full year of ownership.