UK-based ground engineering and geotechnical contractor Van Elle has continued to deliver a strong recovery from the pandemic with half year revenues significantly ahead of the Covid‐19 impacted prior period.

In its interim results for the six months ended 31 October, Van Elle reported that its core markets recovered strongly following the relaxation of pandemic related restrictions, despite supply chain and labour pressures.

The group’s half year revenue was reported as £60.1M, compared with the £38.3M from the previous year. It also represented an increase of 24% compared with the same period in 2020, which is the last comparative period unaffected by Covid-19.

Demand for residential, which represented 43% of the company’s half year sales, was strong in the first half of the year, with Van Elle’s housing division operating at near capacity. The stamp duty holiday helped to drive significant housebuilding activity in the second half of the 2021 financial year and the first half of the current financial year.

In highways, which represented 36.4% of the company’s half year sales, Van Elle successfully delivered schemes under both local authority frameworks, National Highway’s regional delivery programme and its smart motorways programme.

It was recently appointed to deliver all types of piling and retaining structures for the National Highways' smart motorway programme, as one of two primary providers to the SMP Alliance for a period of up to 10 years.

In the rail sector recovery has lagged other divisions in the group. However, enquiry levels and contract activity improved towards the end of the reporting period, which has continued into the second half of the financial year.

Rail highlights include Van Elle’s first major electrification programme since 2018 and a contract for piling and foundations for electrification of the Core Valley Lines.

In the power sector the group is also making progress, particularly on substation and power infrastructure projects across the National Grid and regional distribution networks.

In the area of regional construction, which represented 20.6% of the company’s half year sales, the market has remained highly competitive despite an increase in activity levels following the impacts of Covid-19 and Brexit.

The industrial warehousing sector continues to provide significant opportunities for the group’s expanded range of integrated services, including ground improvement techniques as well as precast concrete and rotary piling operations.

The group has also had further success in winning larger schemes in the London region utilising its deep continuous flight auger technical expertise.

The uncertainty caused by Brexit, which also impacted prior year activity levels, has largely abated, except for some challenges and delays to cross-border deliveries of rig parts for routine maintenance.

Van Elle CEO Mark Cutler said: “Our core markets have seen strong demand with all divisions operating at increased utilisation levels throughout the period. This demand for our services has continued into the third quarter, and we are particularly encouraged by the improved opportunities in our rail division.

“We remain optimistic that the improved levels of demand in our core markets will remain strong for the remainder of the financial year and into the medium term. As a result, we expect the trading performance for the full year to be ahead of our previous expectations.”

In its November 2021 trading update, Van Elle said that results for the six months up to 31 October represented a return to growth over pre-Covid comparative revenues.

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