LONDON (Alliance News) - Redhall Group PLC Friday warned that second-half trading is expected to be below management expectations, with profits below market consensus due to activity levels and margins in its nuclear segment and problems in its engineering segment.
The engineering firm said since it published its interim results, it has experienced slower-than-anticipated order intake on two new framework contracts that it had been awarded within the nuclear segment.
In June the firm posted pretax losses of GBP373,000 for the first half, after a GBP985,000 profit a year earlier, while revenue declined to GBP56.4 million from GBP59.9 million in 2012.
Redhall has now taken measures to resize the businesses to suit the current activity levels and this has resulted in further exceptional restructuring costs in the second half-year.
Activity levels and opportunities in the manufacturing segment are currently promising, it said, but this together with the cash cost of restructuring has led to some increase in the company's working capital requirements although the total borrowings remain within current facilities.
The stock was down 30% at 39.00 pence Friday morning, one of the biggest fallers on AIM.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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