LONDON (Alliance News) - Shares fell in Redhall Group PLC on Thursday as it reported a widened loss and lower revenue for its recently ended financial year, as certain businesses within the group ceased operations.
Shares in the manufacturing and services group fell 16% at 3.15 pence on Thursday.
For the year to the end of September, Redhall's pretax loss widened to GBP4.4 million from GBP1.2 million the year before, due to GBP2.5 million related to the impairment of goodwill and acquired intangible assets.
Revenue for the period declined by 3.0% to GBP37.8 million from GBP38.9 million the prior year, accounting for the closure of several businesses within Redhall.
In the prior year, Redhall ceased operations at R Blackett Charlton Ltd, Redhall Nuclear Ltd, and Redhall Marine. These business contributed GBP6.1 million in revenue and GBP1.3 million of operating profit.
Excluding the contribution of ceased operations, revenue rose to GBP37.8 million from GBP32.8 million.
Despite the performance, Redhall's order book rose by 20% to GBP21 million from GBP17 million the year before, implying encouraging market conditions and a strong pipeline of opportunities.
"Market conditions remain encouraging in the majority of the group's core sectors and the group benefits from a secure order book and a strong pipeline of opportunities. We continue to pursue our strategy of the operational transformation of our manufacturing business and believe that this pursuit of operational excellence will deliver long-term success for the group," said Chair Martyn Everett.
