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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
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Builders and building materials

Van Elle warns on full-year results amid coronavirus disruption

The engineer also cancelled the interim dividend of 0.2p per share

Van Elle Holdings PLC (LON:VANL) warned results for the year ending 30 April will be below market expectations.

The geotechnical engineer said in an update it cancelled the interim dividend of 0.2p per share, due to be paid to shareholders on Friday.

READ: Van Elle profits fall 63% but operations now “stable”

Many customers closed sites, especially in the housing and regional construction sectors, while some suppliers kept operations going though further closures are expected.

The firm added it continued to make progress prior the outbreak and welcomed the UK government's green light to the HS2 project, “which offers significant opportunities for Van Elle”.

Analysts at house broker Peel Hunt see upside in the rail sector, which "could alleviate some of the pressures elsewhere".

"While the short-term miss is disappointing, it is not a surprise given the recent closures from the housebuilders," they commented.

"The group's exposure to infrastructure areas should ensure it continues to be active in parts of the business while many other companies are not."

Shares dropped 13% to 30.75p on Thursday morning.

--Adds analyst's comment--

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