Van Elle's Q4 performance benefits from easing of Covid-19 restrictions

Ground engineering contractor Van Elle said on Friday that trading during the fourth quarter continued to improve amid the easing of Covid-19 restrictions, with strong performances in March and April and exit rate revenues returning to pre-pandemic levels.

Van Elle stated it was "encouraged" that the increased level of activity had continued into the new financial year but highlighted that it remained mindful of industry-wide supply chain pressures which were, in some instances, impacting material costs and availability.

The AIM-listed firm said most divisions had seen "a strong recovery in activity levels" and were operating at near capacity in the last two months of the trading year.

Strata, the group's earliest cycle business, and a positive leading indicator for the other divisions saw strong tendering and activity levels through the period end, while ScrewFast, acquired on 1 April, was said to be "integrating well" and has made a "positive start" since the acquisition, particularly in the highways sector.

As a result of the solid end to the trading year, revenue for the period was now expected to be roughly £85.0m, broadly flat year-on-year, with the group also expecting an adjusted pre-tax loss slightly ahead of consensus forecasts.

As of 0845 BST, Van Elle shares were up 5.25% at 48.94p.