4 Feb 2009 07:00
| For Immediate Release | 4 February 2009 |
Redhall Group plc
("Redhall" or the "Group")
AGM STATEMENT
Redhall Group plc, the specialist engineering support services group is today holding its Annual General Meeting. David Jackson, Executive Chairman, will update shareholders on trading as follows:
"We can confirm that Redhall has experienced a strong start to trading in the first quarter of the current year, with profit before tax and exceptional items ahead of management expectations. As previously announced, trading in the second half is likely to be affected by the loss of the contracted fit-out of the Sea Dragon semi-submersible drilling rig. We anticipate trading in line with revised expectations for the remainder of the current year.
We have commenced discussions with our client Cleveland Bridge Limited and our ultimate client Sea Dragon Offshore Limited in order to reach a prompt and amicable settlement to the cancellation of the Sea Dragon fit-out contract. We continue to work on the fabrication element of Sea Dragon and continue to be reimbursed in a timely manner. We currently hold significant finished product required for onward shipment to Singapore which forms a part of our discussions. We are working hard to minimise the impact of this contract loss and we have several opportunities in the pipeline for replacement work.
The key fundamentals of the Group remain strong. Redhall remains well positioned in defensive, regulated markets with attractive growth drivers. The loss of the Sea Dragon contract should not detract from the merits of the Chieftain acquisition which is integrating well into the overall Group and offers opportunities for the future in nuclear and oil and gas."
| Redhall Group plc David Jackson/Simon Foster | Tel: +44 (0)1924 385 386 |
| Altium | Tel: +44 (0)161 831 9133 |
| Phil Adams/Paul Lines/Simon Lord |
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| Buchanan Communications Tim Anderson / Isabel Podda | Tel : +44 (0)20 7466 5000 |