LONDON (Alliance News) - Manufacturing and services group Redhall Group PLC said its pretax loss widen in its last financial year as it booked exceptional charges and saw revenue decline amid a fall in orders from the oil and gas industry.
The company, which manufactures and installs specialist plant and equipment for a range of industries, including nuclear and defense, said its pretax loss for the year to the end of September was GBP3.6 million, compared to a GBP1.6 million loss it booked a year earlier.
The company booked GBP9.3 million in exceptional charges in the year, up from GBP3.6 million, due to restructuring activity and a loss made on the sale of its RESL unit.
Revenue for the group fell to GBP44.7 million from GBP57.2 million, reflecting continued delays in work programmes by its customers and a downturn in orders from the oil and gas sector amid the low oil price environment.
Redhall said its order book at the close of the year stood at GBP21.0 million, flat year-on-year, but said the quality of the contracts on its books was improving.
"Redhall has undergone dramatic change in the last financial year. The group is now a manufacturing and specialist services business with a clear strategy to leverage our relationships with customers in the nuclear and infrastructure sectors. The key to the next phase of the turnaround at Redhall is achieving an improved order flow in its core businesses," said Chairman Martyn Everett.
"We firmly believe that the nuclear sector in particular represents a significant medium to long term opportunity for the group," he added.
Shares in Redhall were down 3.7% to 6.50 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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