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Cracks widen at Van Elle as order delays hit specialist division

House broker Peel Hunt has lowered its expectations for the current year by 30%
piling
Van Elle is hoping for fourth quarter improvement

foundations specialisVan Elle PLC (LON:VANL) tumbled by a third as it accompanied halved first half profits with a warning of order delays.

New chief executive Mark Cutler had already flagged weak numbers in housing and infrastructure but the slowdown in the specialist arm is an additional problem.

Revenues in the half year to October fell 18% to £42.9mln, while profits dropped to £2.36mln from £5.33mln.

House Peel Hunt lowered its expectations for the current year by 30% as a result of today’s update and by 17-18% for the next financial year.

The broker also lowered its price target to 65p from 100p and its investment rating to 'hold' from 'buy'.

Cutler said he expects the second half to be stronger and was optimistic about a recovery in the fourth quarter of the year.

Van Elle shares fell 30% at 55.5p.

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