Van Elle Holdings PLC COVID-19 Update (6387H)
26 Marzo 2020 - 8:00AM
UK Regulatory
TIDMVANL
RNS Number : 6387H
Van Elle Holdings PLC
26 March 2020
Van Elle Holdings plc
26 March 2020
COVID-19 Update
Van Elle Holdings plc ("Van Elle" or the "Group"), the leading
geotechnical engineering company offering a wide range of ground
engineering techniques and services to customers in a variety of UK
construction end markets, is today providing an update on the
impact of the COVID-19 pandemic on its business and the measures it
is taking to mitigate the risks presented by this situation.
The health and safety of our employees and stakeholders is our
highest priority and we have closely followed the UK government's
guidance in our response to the crisis. We will continue to monitor
the situation closely and respond to conditions by making such
operational changes as are necessary to ensure the continued
wellbeing of our staff and the communities in which we operate.
As set out in the interim results on 21 January 2020, conditions
in the Group's housing and highways markets were encouraging in the
early part of FY2020 and good progress has continued to be made in
these segments. The transition to the CP6 funding period in the
rail sector continues to be slow, but this remains a very
significant opportunity for the Group, with activity levels
expected to increase materially in FY2021. In addition, the Group
welcomed the UK government's decision to proceed with the HS2
project, which offers significant opportunities for Van Elle.
The rapid spread of COVID-19 is now having a significant, direct
impact on the Group. Many customer sites, particularly in the
housing and regional construction sectors, have closed in the last
few days, with some suppliers also suspending operations. The
situation continues to evolve and it is to be expected that there
will be further temporary closures and operational disruption. It
is inevitable that this will have an adverse impact on performance
for the remainder of the year ending 30 April 2020, which the Board
now expects to be below current market expectations. This situation
is unprecedented, with the duration and scale of potential impacts
being difficult to predict. In view of this uncertainty the Board
does not believe it is possible to provide meaningful guidance for
FY2021 at this stage.
The Company continues to have a positive cash balance and an
undrawn overdraft facility. However, to provide the flexibility
required for the highly uncertain planning environment, the Company
will enter discussions with its bankers and other debt providers on
medium-term financing options, backed by its substantial asset
base. The potential short-term cash impacts of the current
situation are difficult to predict accurately and depend on a
variety of factors, including future customer and governmental
actions. In light of this, the Group is taking all appropriate
proactive and prudent steps to manage costs and preserve cash
within the business. In line with this approach, the Board has
resolved to cancel the interim dividend of 0.2p per share, which
was due to be paid to shareholders on 27 March 2020, with the
dividend policy to be kept under review as conditions become
clearer.
The Board will continue to monitor the situation closely and
explore such further actions as are necessary to support the
Group's liquidity, including accessing any relevant UK government
support measures that are available.
Van Elle is a clear leader in the UK geotechnical engineering
market, with strong positions in the housing, infrastructure and
regional construction sectors that will benefit the Group as and
when market activity resumes.
A further market update will be provided post the FY2020
year-end as normal.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation. Upon the publication of this
announcement via Regulatory Information Service, this inside
information is now considered to be in the public domain.
Enquiries:
Van Elle Holdings plc Tel: 01773 580
Mark Cutler 580
Graeme Campbell
Peel Hunt LLP (Nominated Adviser and corporate Tel: 020 7418 8900
broker)
Mike Bell
Ed Allsopp
Instinctif Partners (Financial Public Relations) Tel: 020 7457 2020
Mark Garraway
James Gray
Rosie Driscoll
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDLELLLBXLFBBF
(END) Dow Jones Newswires
March 26, 2020 03:00 ET (07:00 GMT)
Grafico Azioni Van Elle (LSE:VANL)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Van Elle (LSE:VANL)
Storico
Da Apr 2023 a Apr 2024