Van Elle

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.

Van Elle Limited
Public limited company
Traded asLSE: VANL
IndustryDeep foundation, Track (rail transport)
Founded1984 (1984)[1]
HeadquartersNottinghamshire, East Midlands, United Kingdom
Revenue£43.1m UK (2016)[2]
£3.2m UK (2016)[2]
Number of employees
515 (2016)[1]
Websitewww.van-elle.co.uk

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]

By 2016, the company had worked on projects for Network Rail, Balfour Beatty and Morgan Sindall Group.[1] 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]

gollark: Can you make a LEA-242-or-whatever oxide pancake?
gollark: Odd.
gollark: Wait, must it be EXACTLY three?
gollark: If not I guess the corners will fit enderium.
gollark: Can it run TBU oxide?

References
  1. Hart, Joanne (12 November 2016). "Investors on solid ground after flotation of engineering services firm Van Elle". ThisIsMoney.co.uk. Retrieved 21 January 2018.
  2. "Van Elle in negotiations to buy 'several companies' following stock market float". 19 January 2017. Retrieved 21 January 2018.
  3. "Van Elle's new rigs". The Construction Index. 17 June 2015. Retrieved 21 January 2018.
  4. Morby, Aaron (26 October 2016). "Van Elle raises £40m in stock market debut". Construction Enquirer. Retrieved 21 January 2018.
  5. "Van Elle founder bows out". The Construction Index. 3 January 2017. Retrieved 21 January 2018.
  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. Williams, Christoper; Tovey, Alan (11 November 2017). "Van Elle faces boardroom battle as founder seeks return". Telegraph. Retrieved 21 January 2018.
  8. Williams, Christopher (28 November 2017). "Former chairman attacks Van Elle over £330,000 bill for chief executive's house". Telegraph. Retrieved 21 January 2018.
  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. Garner-Purkiss, Zak (5 December 2017). "Van Elle board slams founder's power play". Construction News. Retrieved 21 January 2018.
  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. "Van Elle shareholders shut down Ellis' bid to return". The Construction Index. 18 December 2017. Retrieved 21 January 2018.
  13. Ashwell, Emily (18 December 2017). "Van Elle founder's bid to return defeated". New Civil Engineer. Retrieved 21 January 2018.
  14. Morby, Aaron (16 January 2018). "Carillion fall-out hits Van Elle and Speedy". Construction Enquirer. Retrieved 16 January 2018.
  15. "Derbyshire company warns of 'adverse financial impact' after Carillion collapse". Derbyshire Times. 18 January 2018. Retrieved 21 January 2018.
  16. Prior, Grant (25 January 2018). "Van Elle reveals full cost of Carillion collapse". Construction Enquirer. Retrieved 25 January 2018.
  17. Sholli, Sam (17 January 2019). "Van Elle boss blames Carillion for profit slump". New Civil Engineer. Retrieved 17 January 2019.
  18. Prior, Grant (19 July 2019). "Piling specialist Van Elle issues another profit warning". Construction Enquirer. Retrieved 19 July 2019.
  19. Prior, Grant (24 July 2019). "Profits halved at piling specialist Van Elle". Construction Enquirer. Retrieved 24 July 2019.
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