LONDON (Alliance News) - Manufacturer and engineering services business Redhall Group PLC on Wednesday said its annual performance will fall below prior expectations due to delays in key projects.
Shares in the company were down 29% at 4.79 pence on Wednesday in reaction to the announcement. Stock hit a low of 3.74p at the London open.
Redhall said that, due to delays outside of its control, as well as "slower than expected" efficiency gains, full-year performance will be "materially below" expectations. Redhall's financial year ends on September 30.
In financial 2017, Redhall reported a pretax loss of GBP1.2 million on revenue of GBP38.9 million.
Booth Industries, Redhall's steel door and modular wall fabrication business, saw "project slippages" and had issues with the implementation of Redhall's transformation strategy.
Another of the company's arms, Redhall Networks, has suffered under "reduced market activity" and Redhall expects it to record lower revenues in its second half as a result. However, the cellular rigging installation business is expecting increased demand in 2019 as 5G mobile internet rolls out.
As at August 31, Redhall's order book stood at GBP23 million, up from GBP29 million on March 31.
"The board anticipates that the group will deliver steady growth in 2019 supported by robust market demand and a strong pipeline of opportunities, coupled with an improvement in operating margins as the benefits of the transformation strategy start to be delivered," said Redhall.
