Van Elle shuts Thurrock piling depot as project delays mount

What happened

Van Elle has closed its depot at Thurrock after its London-based Rock & Alluvium business recorded mounting losses. The contractor cited delays to residential projects under the Building Safety Act as a key factor. In its accounts for the year to 30 April 2026, filed on 5 November, Van Elle reported that approval delays have significantly impacted residential construction in London. The company undertook a restructure to reduce costs and minimise losses at Rock & Alluvium. The depot closure is part of these cost-cutting measures.

The General Piling division, which includes Rock & Alluvium, recorded an underlying operating loss of £2m for the financial year. This compares to a £600,000 profit in the previous year. Despite this, divisional revenue rose by 11.5% to £51.3m, helped by a £10m project for Sheffield Forgemasters. Costs for restructuring Rock & Alluvium totalled £112,000, while the group wrote down £1.1m of goodwill due to weaker performance. This included writing off the full £868,000 attributed to Rock & Alluvium and £188,000 related to Ground Engineering Services.

The background

Van Elle acquired Rock & Alluvium from Galliford Try in November 2023. Shortly after, the firm established the Thurrock depot to support its London operations. The Building Safety Act has led to delays in securing approvals for many residential projects, particularly in the London area. This has reduced the volume of work and put pressure on margins. Van Elle attributed the financial deterioration of its General Piling division to these delays, alongside increased pressure from competitive pricing.

Across the group, Van Elle's revenue from continuing operations rose by 5.5% to £137.7m. However, its gross margin fell to 27% from 31% a year earlier. The company reported a statutory pre-tax loss from continuing operations of £333,000, down from a £4.6m profit previously. The pre-tax margin dropped from 3.6% to minus 0.2%.

Including discontinued operations in Canada, Van Elle posted a total after-tax loss of £3.7m, reversing the previous year’s £1.8m profit. The Canadian operations, sold in December 2025, accounted for £2.5m of the total loss.

What people are saying

Van Elle stated that the closure and restructuring measures were needed "to reduce cost and minimise losses whilst volumes are impacted by the Building Safety Act delays." It reported that the delays had created difficulties in gaining approvals for residential work, particularly in London, a factor that was emphasised in the latest accounts.

The company highlighted some positive developments, including early signs of improvement in the approvals process. Van Elle also underscored long-term agreements secured recently, including an eight-year deal with United Infrastructure for piling and foundations on electricity transmission schemes, and a ten-year ground investigation contract with United Utilities.

The accounts recorded that provisions for warranty and defect claims increased from £1.4m to £1.9m. Van Elle remains involved in two claims whose likely costs could not yet be reliably estimated, but said insurance is in place for those matters, with any excess already covered in reserves.

The numbers

Residential revenue for the group fell by 15.5% to £43.9m, reflecting the slowdown in approvals. Infrastructure revenue, by contrast, increased by 9.4% to £59.3m, while regional construction revenue rose 42.1% to £33.8m, partly due to work on Sheffield Forgemasters.

The group's Specialist Piling and Rail division reported revenue of £47.8m. However, its underlying operating profit was down to £2.9m from £5.3m the year before. Ground Engineering Services revenue remained steady at £38.1m, with an increase in underlying operating profit from £900,000 to £1.4m, attributed to growth in energy-sector investigations.

Van Elle’s average workforce decreased from 693 to 670 employees over the year. The company also reported £2.7m in research and development tax credits.

The group's cash balance reduced from £7.2m to £4.5m during the period, due to further investment in piling rigs. Van Elle sold its transport fleet for £2.9m and outsourced transport services to WS Transport.

What happens next

Van Elle is now part of Strabag UK, having been acquired by the Austrian-owned group for roughly £59m in June 2026. The recently filed accounts cover the period before this takeover was completed. The company has reported early signs that the delays in Building Safety Act approvals may be starting to ease, but it will continue to monitor conditions in the residential market. It will also focus on delivering newly won long-term infrastructure contracts and managing ongoing warranty claims, which remain covered by insurance.