Proactive Investors - Run By Investors For Investors

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%
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.

View full VANL profile View Profile

Van Elle Holdings Timeline

Related Articles

SigmaRoc quarry
April 18 2019
Founded in 2016, the firm looks to create value by purchasing assets in the fragmented construction materials market and forming them into larger groups to create efficiencies
Social care
February 01 2019
In the first half of the current year, the company said its health and housing pipeline had grown to 26 schemes with £222.5mln of gross development value

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use