15 Mar 2018 07:00
For immediate release | 15 March 2018 |
Redhall Group plc
("Redhall" or the "Group")
Hinkley Point C Contract Awards and Trading Update
Redhall Group plc (AIM: RHL), the high integrity manufacturing and services group, is pleased to announce that its subsidiary, Jordan Manufacturing Limited (JML), has signed three contracts with Balfour Beatty for the supply of specialist manufactured metal products for incorporation in the marine works at Hinkley Point C. These contracts substantially increase the scope of work for which JML was named preferred bidder.
The Group is delighted to have finally agreed these material contracts, but notes the timing has been delayed due to changes in scope, programme and design. Delays in large orders can have a significant impact on reported results and this delay, combined with those in other contract programmes and awards at our manufacturing businesses, has led the Board to conclude that the Group's financial performance for the current financial year, which will naturally be second half weighted, is likely to be adversely affected.
Despite issues with the timing of contract awards, our forward order book continues to demonstrate the positive momentum in the Group. The order book has increased from £32m to £35m since December 2017. In addition, the Group announced in December 2017 that JML had secured a framework valued at £18m over three years to manufacture containment systems and associated process equipment for Cavendish Nuclear under a teaming agreement which is not included in the order book.
The Chief Executive of Redhall, Phil Brierley, commented:
"We are delighted to have secured these important contracts with Balfour Beatty and look forward to making a significant contribution to the Hinkley Point C project. Together with our framework to manufacture containment systems for Cavendish Nuclear, we are clearly demonstrating the market's confidence in the Group's capabilities to deliver complex high integrity manufactured product.
"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."
Contact details:
Redhall Group plc | Tel: +44 (0) 1924 385 386 |
Phil Brierley, Chief Executive Chris Kelly, Group Finance Director Wayne Pearson, Chief Operating Officer | |
Buchanan, PR Adviser | Tel: +44 (0) 20 7466 5000 |
Mark Court, Sophie Wills, Gemma Mostyn-Owen | |
GCA Altium, Financial and Nominated Adviser | |
Tim Richardson, Simon Lord | Tel: +44 (0) 20 7484 4040 |
WH Ireland, Broker | |
Adrian Hadden, Ed Allsopp | Tel: +44 (0) 20 7220 1666 |