LONDON (ShareCast) - (Sharecast News) - Van Elle's shares jumped on Wednesday, despite the business reporting a dive in profits and revenue, as it claimed to be seeing signs of improvement from a new transition plan.
The engineering contractor, which had warned on profits last week, reported profit before tax of £4.0m for the year ended 30 April - a drop of 57% compared to the year before, as revenue declined 15% to £88.5m.

As a result, Van Elle's total dividend came to 2p per share - 46% lower than the 3.7p distribution the year before.

The AIM-listed company attributed the weaker performance to the impact of market uncertainty, which it said had affected a number of its most significant markets, while it also experienced operational weaknesses in its general piling division in the third quarter.

Mark Cutler, chief executive of Van Elle, said: "Whilst it is disappointing to report that performance across the year has been impacted by a combination of widely-reported market uncertainties and previously highlighted operational weaknesses, we are seeing tangible signs of operational improvement as a result of the transition plan we are implementing."

The three-phase transition plan launched in the first quarter of the current year was intended to improve operational performance and establish a platform for growth, starting with a business review and moves to stabilise the company's performance.

Van Elle said its "improved" customer-focused approach and positive order book development gave it confidence in its prospects, despite the uncertain market conditions and impact on investment it was facing due to protracted Brexit negotiations, as well as a general slowdown in contract deployment.

However, the company added that the board was mindful that market uncertainty and the resultant volatility could persist further into the current financial year.

Van Elle's shares were up 11.71% at 39.10p at 1251 BST.

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