LONDON (Alliance News) - Manufacturing and services firm Redhall Group PLC on Wednesday said its loss narrowed significantly in its recent financial year, and it is confident on its outlook following a transitional year for the business.
Redhall, which makes plant and equipment used in the nuclear and defence industries, said it made a pretax loss of GBP1.7 million in the 12 months to the end of September, compared to a GBP12.2 million loss the year before, when Redhall booked significant restructuring costs as it refocused its manufacturing operations.
On an adjusted basis, stated before exceptional items, Redhall returned to operating profit, making GBP900,000 compared to a GBP700,000 loss a year before, as the cost savings made from its restructuring flowed through.
Revenue declined to GBP43.8 million from GBP44.7 million, as the company's manufacturing operations were steered away from the struggling oil and gas sector. This unit has now secured contract wins in the defence, nuclear decommissioning and infrastructure sectors, and Redhall's order book at the end of September was at GBP29.0 million, compared to GBP21.0 million a year before.
"We are on track to create a high-integrity manufacturing business engaged in the defence, nuclear decommissioning, infrastructure and nuclear new build sectors and will focus this year on delivering further improvements in profitability and operational performance and building a robust platform for a sustainable period of growth," said Martyn Everett, Redhall's chairman.
Redhall said it is involved in a number of significant contract tenders which should further books its order book going forward, including major door and fabrication packages for the Hinkley Point nuclear project in the UK.
Shares in Redhall were up 8.2% at 9.20 pence on Wednesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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