Reasons to Invest

Reasons to invest


Investors Summary

1

A Leading UK player

  • The UK’s largest ground engineering contractor with the broadest range of specialist services, and a presence across all UK regions
  • Transformation strategy completed, experienced Board and senior management team in place
  • Diverse, expert position across housing, infrastructure and construction markets enables early benefit from upside investment cycles, whilst mitigating against sub-sector headwinds
  • Successful track record of recent M&A and plan for further consolidation and diversification
  • Leading position in high-growth water and energy sub-sectors with high levels of sector activity anticipated over the long term
  • Customer frameworks in place in all sectors
  • Low-risk, cash-generative commercial model
  • 132 Rigs
  • More than 25 different techniques

2

Differentiated offering

  • Full lifecycle capability; from ground investigation to design to construction to test & monitor
  • An integrated, in-house approach to complex projects; expertise across 25 specialist techniques offers customers value-engineered solutions tailored to optimal project outcomes
  • Highly innovative, offering several unique capabilities
  • Leading track record in offsite, modular foundation systems; both in precast concrete and steel
  • Significant expertise in highly regulated operating environments such as rail, power and highways
  • Diverse customer base with high levels of repeat business

3

Attractive Markets

  • Delivering first-class ground engineering services across over 1000 projects a year to a wide variety of customers and end markets
  • Balanced exposure across UK infrastructure, housing and construction markets
  • Buoyant market conditions post-pandemic are aligned to Van Elle capabilities
  • Strong customer relationships and high levels of repeat business

4

Well-invested and Resourced

  • The UK's largest and best invested rig fleet (circa £50m invested over the last six years)
  • Over 25 specialist ground engineering techniques
  • UK's largest directly employed workforce within ground engineering, with over 600 employees
  • Over 5% of employees undergoing an apprenticeship, trainee or professional development route

5

Strong financial position

  • Strong balance sheet, available funding facility and low levels of debt
  • In excess of £50m replacement cost of plant and machinery
  • Liquidity headroom to support further growth, M&A and capital investment
  • A stable institutional shareholder base
  • A progressive and well covered dividend
  • 1.2 P Dividend
  • £11m Funding Facility

6

Clear Strategy for Growth

  • Medium term growth plans include:
    • >10% compounded year-on-year revenue growth driven by:
      • housing market recovery
      • investment growth in water and energy sectors
      • higher rail CP7 spend and improved work mix
      • new civils capability
      • bolt-on acquisition
      • new customer partnerships and frameworks
    • EBIT margin improvement from 4% to 6–7%
    • ROCE improvement from 10.5% to 15–20%
  • Revenue Growth > 10%
  • Roce Target 15-20%