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RHL - Redhall News Story

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Last Trade - 23/05/19

Micro Cap
Market Cap £n/a
Enterprise Value £n/a
Revenue £37.8m
Position in Universe th / 1826

Redhall Group PLC - Full Year Trading Update

Mon 17th October, 2016 7:00am
RNS Number : 6645M
Redhall Group PLC
17 October 2016

For immediate release

17 October 2016

Redhall Group plc

("Redhall" or the "Group")

Full Year Trading Update

Redhall Group plc (AIM: RHL), the high integrity manufacturing and specialist services group, announces a full year trading update ahead of its results for the year ended 30 September 2016. The Group's financial results for the year are expected to be in line with expectations.

High Integrity Manufacturing

Redhall's high integrity Manufacturing businesses, Booth Industries and Jordan Manufacturing, have been successful in securing significant new orders since the announcement of the Group's interim results on 8 June 2016. This includes a further 2.0m of rail infrastructure work and 4.6m of defence related work. Jordan Manufacturing has secured over 2.5m of further awards in the nuclear decommissioning market. The total order book for our Manufacturing businesses now stands at 21m compared with 17m at the half year.

The announcement of the Government's decision to proceed with Hinkley Point C is potentially very significant for the Group. Booth Industries and Jordan Manufacturing have already submitted, or are in the process of submitting, a number of tenders for work on this substantial project. The timing of work for these tenders varies but it is anticipated that awards to the successful bidders will be as early as mid-2017.

Government support for Hinkley Point C is also an indication that its nuclear energy strategy may lead to the development of further nuclear power stations providing work to manufacturing businesses over a significant future period.

Specialist Services

Redhall's Specialist Services segment has performed well in the financial year to 30 September 2016, enabling the Group to invest in the growth of its Manufacturing businesses. Redhall Jex has recently been successful in winning a 1.2m contract to install a rubber micronisation plant for a joint venture partnership in Spain and continues to support its blue chip customer base on capital and maintenance projects.

In the interim results in June it was announced that BAE had retendered the work packages that sat within the scope of Redhall Marine. Redhall Marine has been informed that it will not be awarded the new contract as it was unable to submit a compliant tender as it considered that the new terms represented a material increase in the level of risk. The interim contract that Redhall Marine has been working under since December 2015 is expected to end in January 2017.


It is anticipated that the remaining businesses in Specialist Services, Redhall Networks and Redhall Jex,

will continue to perform well in the current financial year.

The Board continues to be encouraged by the level of opportunities and the growth in order book in the Group's chosen markets within high integrity manufacturing. Consequently it expects that the overall profitability for the year ending 30 September 2017 will remain in line with market expectations.

The Group's results for the year ended 30 September 2016 are expected to be announced in early December 2016.

Contact details:

Redhall Group plc

Tel: +44 (0) 1924 385 386

Phil Brierley, Chief Executive
Chris Kelly, Group Finance Director


Mark Court, Sophie Cowles, Jane Glover

Tel: +44 (0) 20 7466 5000

GCA Altium, NOMAD and Financial Advisors

Paul Lines, Simon Lord

Tel: +44 (0) 845 505 4343

WH Ireland, Broker

Adrian Hadden, Nick Prowting

Tel: +44 (0) 20 7220 1666

This information is provided by RNS
The company news service from the London Stock Exchange
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