RHL.L Share News (RHL)

LONDON (Alliance News) - Shares in Redhall Group PLC plummeted Thursday after the company said delays in newly won contracts will hurt the outcome of its current financial year ending September 30.

In financial 2017, the pretax loss at the engineering conglomerate deepened to GBP1.2 million from GBP1.1 million the year prior. This was after revenue fell 11% to GBP38.9 million from GBP43.8 million the year before.

Shares were down 15% at 7.00 pence each Thursday following Redhall's latest trading update.

The company's subsidiary, Jordan Manufacturing Ltd, has secured three contracts from Balfour Beatty PLC for the supply of specialist manufactured metal products for incorporation in the marine works at Hinkley Point C nuclear power project. The contracts, however, have been delayed due to changes in scope, programme and design.

The manufacturing and services group said its forward order book continues to demonstrate positive momentum and has increased to GBP35 million from GBP32 million since December 2017.

"Whilst it is disappointing that the timing of contract awards has impacted our current year expectations, these are our first significant orders on what is a critical infrastructure project for the UK. We believe these contracts will be the first of many on the Hinkley Point C project and in the nuclear sector as a whole in the coming years," Chief Executive Phil Brierley said.