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Thu, 02nd Jun 2011 07:59
Engineering support services group Redhall reported a weak set of first half figures following the loss of the Vivergo contract but it expects trading in the second half and beyond to be much improved.The niche engineer said adjusted pre-tax profit fell 70% at £1m during the six months ended 31 March 2011. Revenue for the half year fell to £64.3m from £65.4m in 2010. Chairman and chief executive David Jackson commented, "Our business has suffered a set-back with the cessation of the Vivergo contract which has contributed to a disappointing first half result.""The board believes this is a low point and trading will be much improved in the second half and beyond."The business incurred exceptional costs of £361,000 in the first half of this financial year relating principally to integration costs on the formation of Redhall Nuclear, Redhall explained.Net debt as at 31 March was £10.8m as a result of £14.6m outflow from operations principally due to Vivergo.Redhall said Defense was performing well with award of first phase of £20m contract from AWE.Its order book stands at £101m including £25.6m received since 14 March 2011.The board has not recommended an interim dividend.CJ
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