Van_Elle

Van Elle

Van Elle

British rail infrastructure company

Van Elle is a piling and rail infrastructure company based in Nottinghamshire, between Pinxton and Kirkby-in-Ashfield, in the United Kingdom. It is listed on the sub market of the London Stock Exchange AIM.

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History

The company was founded in 1984, by structural engineer Michael Ellis.[1] In the year to 30 April 2015, Van Elle’s turnover rose 57% from 2014's £46m to £72.5m for the year to April 2015. Profit more than tripled, from £2.8m to £9m, and headcount grew from around 300 to over 400.[3]

In October 2016, the company was floated on the AIM sub market of the London Stock Exchange, achieving a market capitalisation of £80m. Van Elle was forecasting revenues for 2016 approaching £85m.[4]

Ellis retired the following December,[5] but remained a shareholder in the company. In 2017, delays in rail projects caused turnover to drop.[6] In November 2017, Ellis started an attempt to remove the company's chief executive Jon Fenton and a senior independent director, Robin Williams, citing concerns about the company's management, departures of key staff and financial forecasts.[7]

During the dispute, the company faced questions after it wrote off more than £330,000 of work building a new house for Fenton (who announced he would be stepping down from the company due to a family illness),[8] while Ellis accused Van Elle directors of making personal attacks ahead of a shareholders' vote in December on returning him to the board. The board rebutted Ellis's criticism, accusing him of damaging the company.[9][10][11]

At the shareholders meeting, Ellis's bid to return to the board was rejected.[12][13] In January 2018, the company warned it would potentially lose £1.6 million as a result of the collapse of Carillion, for whom it was working as a subcontractor on projects for Network Rail.[14] Van Elle also reported uncertainty relating to £2.5m worth of future work for Network Rail, with a potential impact on future financial results.[15]

Interim results for the year to 31 October 2017, showed the firm made an underlying pre tax profit of £5.4m on turnover of £52.6m.[16] In January 2019, Van Elle reported pretax profits down 54% to £2.4m as turnover fell 18% to £42.9m in the six months to 31 October 2018, with its CEO blaming Carillion's collapse for the profit slump.[17] Two further profit warnings followed as its share-price halved ahead of its annual results announcement in July 2019.[18]

Results for the year to 30 April 2019 showed a 56.5% fall in pre tax profits (to £4m from £9.2m) as turnover dropped from £103.9m to £88.5m; during the year, the company's share price fell from 82p to 35p, valuing the company at £29m.[19] The 2020-2021 COVID-19 pandemic caused Van Elle to declare a loss of £700,000 for the six months to 31 October 2020, with revenues down over 20% to £38.3m.[20] In the year to April 2021, the firm reported a pre-tax loss of £1.4m, following its £2.2m loss in 2019, with revenues stable at £84m.[21] However, the company returned to profitability in the half year to October 2021.[22]

In October 2023, Van Elle strengthened its presence in southeast England through the acquisition of rival firm Rock & Alluvium from Galliford Try in a deal worth up to £3.8m.[23]

References

  1. [1]
    "Van Elle needs me back, Ellis insists". Construction Index. 11 December 2017.
  2. [2]
    "Van Elle in negotiations to buy 'several companies' following stock market float". 19 January 2017. Retrieved 21 January 2018.
  3. [3]
    "Van Elle's new rigs". The Construction Index. 17 June 2015. Retrieved 21 January 2018.
  4. [4]
    Morby, Aaron (26 October 2016). "Van Elle raises £40m in stock market debut". Construction Enquirer. Retrieved 21 January 2018.
  5. [5]
    "Van Elle founder bows out". The Construction Index. 3 January 2017. Retrieved 21 January 2018.
  6. [6]
    "Piling contractor Van Elle is taking a small hammering itself from delays in rail sector contract starts". Construction Index. Retrieved 21 January 2018.
  7. [7]
    Williams, Christoper; Tovey, Alan (11 November 2017). "Van Elle faces boardroom battle as founder seeks return". Telegraph. Retrieved 21 January 2018.
  8. [8]
    Williams, Christopher (28 November 2017). "Former chairman attacks Van Elle over £330,000 bill for chief executive's house". Telegraph. Archived from the original on 28 November 2017. Retrieved 21 January 2018.
  9. [9]
    Torrance, Jack (11 December 2017). "Founder steps up war of words with Van Elle board ahead of crucial shareholder vote". Telegraph. Retrieved 21 January 2018.
  10. [10]
    Garner-Purkiss, Zak (5 December 2017). "Van Elle board slams founder's power play". Construction News. Retrieved 21 January 2018.
  11. [11]
    Robinson, Dan (12 December 2017). "Founder of Notts ground engineer Van Elle in boardroom battle to regain control". Nottingham Post. Retrieved 21 January 2018.
  12. [12]
    "Van Elle shareholders shut down Ellis' bid to return". The Construction Index. 18 December 2017. Retrieved 21 January 2018.
  13. [13]
    Ashwell, Emily (18 December 2017). "Van Elle founder's bid to return defeated". New Civil Engineer. Retrieved 21 January 2018.
  14. [14]
    Morby, Aaron (16 January 2018). "Carillion fall-out hits Van Elle and Speedy". Construction Enquirer. Retrieved 16 January 2018.
  15. [15]
    "Derbyshire company warns of 'adverse financial impact' after Carillion collapse". Derbyshire Times. 18 January 2018. Retrieved 21 January 2018.
  16. [16]
    Prior, Grant (25 January 2018). "Van Elle reveals full cost of Carillion collapse". Construction Enquirer. Retrieved 25 January 2018.
  17. [17]
    Sholli, Sam (17 January 2019). "Van Elle boss blames Carillion for profit slump". New Civil Engineer. Retrieved 17 January 2019.
  18. [18]
    Prior, Grant (19 July 2019). "Piling specialist Van Elle issues another profit warning". Construction Enquirer. Retrieved 19 July 2019.
  19. [19]
    Prior, Grant (24 July 2019). "Profits halved at piling specialist Van Elle". Construction Enquirer. Retrieved 24 July 2019.
  20. [20]
    "Covid sends Van Elle into the red". The Construction Index. 20 January 2021. Retrieved 20 January 2021.
  21. [21]
    Morby, Aaron (17 August 2021). "Van Elle eyes return to profit after second year of losses". Construction Enquirer. Retrieved 17 August 2021.
  22. [22]
    Morby, Aaron (31 January 2022). "Piling specialist Van Elle returns to profit". Construction Enquirer. Retrieved 31 January 2022.
  23. [23]
    Morby, Aaron (26 October 2023). "Van Elle buys piling rival Rock and Alluvium for £3.8m". Construction Enquirer. Retrieved 27 October 2023.
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