LONDON (Alliance News) - Redhall Group PLC Thursday reported a wider pretax loss in the first half of its financial year, as revenue fell following customer delays and the withdrawal from contracts and it booked costs relating to goodwill and restructuring.
The manufacturing and specialist services group reported a pretax loss in the six months to March 31 of GBP9.6 million, wider than the GBP1 million loss made in the same period the prior year, as revenue fell to GBP41.4 million from GBP50.6 million.
Redhall said that revenue was hit by its withdrawal from framework contracts and by customer delays, and that it also booked a GBP5.2 million goodwill write-off charge and GBP2.5 million in restructuring costs. It said it expects restructuring costs to total GBP3.6 million for the full year.
Revenue in the Manufacturing business was hit by delays in the nuclear market and with a major customer due to budgetary constraints and design delays.
A protracted downturn in the oil and gas sectors also contributed to a reduction in volumes and profitability in the first half, Redhall said.
Redhall will not pay an interim dividend.
"I am pleased to announce that the first stage of Redhall's turnaround is complete. The management team is now focused on implementation of the strategy to grow the businesses in the nuclear, oil and gas and specialist infrastructure markets and on improving margins whilst continuing to reduce debt levels," Chairman Martyn Everett said in a statement.
"The execution of high margin work in our Manufacturing businesses is at the heart of our strategic plan. A number of projects secured during the first half have demonstrated our capability to deliver complex projects for our key customers and we anticipate an enhanced level of profitability in the second half of the year," he added.
Shares in Redhall were trading down 2.3% at 10.50 pence Thursday morning.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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