When Van Elle set up Van Elle Canada Inc in 2023, it was primarily to work on the Toronto Metrolinx GO expansion programme 鈥� a 10-year, $13.5bn project.
But with delays at Metrolinx and the scope of work being cut back, Van Elle has decided to get out of town.
Van Elle chief executive Mark Cutler explained: 鈥淭he group's Canadian rail subsidiary delivered revenue growth but has been impacted by further delays to the Toronto Metrolinx GO Expansion programme, which was the primary reason for entering the Canadian rail market.
鈥淲hilst we have been awarded contracts across the broader rail sector in Ontario, we have not yet been able to deliver adequate volumes to achieve a profitable performance.鈥�
Van Elle Canada is classified as a discontinued operation in Van Elle鈥檚 2025 accounts, out today, and has been put under strategic review.
For the year ended 30th April 2025, Van Elle Canada Inc generated revenue of 拢3.5m (2024: 拢402,000) but made a loss of 拢1.3m, on the back of a 拢1m loss the previous year.
The Canada foray softened overall group profits for Van Elle Holdings, from 拢5.8m in financial year (FY) 2024 to 拢3.0m in 2025.
Based on continuing operations alone, results for Van Elle Holdings in the year to 30th April 2025 show revenue down 6% at 拢130.5m (2024: 拢139.1m), and operating profit of 拢5.5m (2024: 拢6.9m), underpinned by a strong performance in specialist piling and rail, offset by weaker volumes in general piling.
Pre-tax profit on continuing operations was 拢4.6m (2024: 拢7.1m).
Summarising the results, Mark Cutler said: 鈥淲hilst FY2025 presented challenges, Van Elle succeeded in delivering a resilient performance and continuing to broaden its range of complementary services, both organically and by selective acquisition. As a result, the group remains in a very strong position to benefit from expected improvements in many of its end markets, most of which are aligned with the government's investment priorities.
"With a strong existing order book and solid balance sheet, the business continues to win important new framework agreements and partnerships, which gives the board confidence in the prospects for the group."
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