Shares in Van Elle Holdings PLC (AIM:VANL) fell 8% after the UK’s largest ground engineering contractor warned that profits for the year ending April 2026 will come in well below market forecasts.
The company said the tough trading backdrop it faced last year has persisted into the new financial year, with revenues failing to grow as expected.
Contract delays and spending restrictions across its core markets, particularly high-rise housing schemes held up by Building Safety Act approvals, have weighed on performance.
As a result, full-year earnings are now expected to fall short of the prior year as well as analysts’ estimates.
Despite the setback, Van Elle highlighted a strong order book of £47.3 million at the end of July, up from £41.5 million in April, and pointed to “significant opportunities” in the energy and water sectors.
A further trading update covering the first half is due in December.
The shares fell 3.1p to 33.9p.