LONDON (ShareCast) - (Sharecast News) - AIM-listed ground engineering contractor Van Elle saw its shares slump as it issued a profit warning and highlighted ongoing uncertainty in markets.
The group, which cautioned in April over the impact of end-market volatility and project slippages, had been expecting to report an annual pre-tax profit of slightly more than £5m. However, it said on Friday that it now needs to "adjust a small number of specific balance sheet items and contract accruals". These adjustments will adversely impact FY2019 adjusted pre-tax profit before by £500,000, it said.

Van Elle, which plans to update investors on its 2020 outlook at the time of its results, said that despite the "encouraging" momentum at the end of last year, it is continuing to experience customer uncertainty in some of its markets. This has resulted in a quiet start to the year in some segments and increased volatility in month-on-month performance.

"As set out in April, the group has been successful in securing positions on attractive, long term contracts," it said. "Although the company is seeing the benefits of a number of commercial and operational initiatives recently implemented, the board is mindful that market uncertainty and the resultant volatility may persist further into the current financial year, which would limit the rate at which progress can be made."

At 0940 BST, the shares were down 6.9% at 34p.

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