26 Sep 2018 07:00
| For immediate release | 26 September 2018 |
Redhall Group plc
("Redhall" or the "Group")
Full Year Trading Update
At the time of the announcement of the Group's half year results in June 2018, the Board's expectations for the year ending 30 September 2018 were based on strong trading in the final quarter and margin improvements obtained from our operational excellence programme. Unfortunately, delays on a number of key projects outside of the Group's control and slower than expected operational efficiency gains mean the Board now anticipates that the Group's full year performance will be materially below its previous expectations. Overall, market conditions remain robust in the majority of the Group's core markets.
The Group continues to pursue its transformation strategy, focusing on operational excellence and driving its pipeline of opportunities in target markets. The Group's order book as at 31 August 2018 was £23 million (31 March 2018: £29 million using the same basis of measurement). The order book is supported by a strong pipeline of opportunities.
The award of the Hinkley Point C works for Jordan Manufacturing was a major highlight of the first half, and deliveries to site commenced in quarter four of this financial year. We have also made good progress on the implementation of our "runners and repeaters" strategy across a more diverse range of sectors which is a key element of improving the resilience of this business. However, current year revenues were impacted by the timing of contract deliveries.
In Booth Industries, traction of our business transformation strategy has been slower than expected which, coupled with project slippages, has impacted performance. Defence and infrastructure markets continue to represent a significant proportion of the pipeline. We are also seeing more opportunities to deliver high performance, multi-function doors into new markets, such as automotive test facilities and high-profile building projects. We remain confident of securing many of these projects over the next few months.
Reduced market activity at Redhall Networks has resulted in lower revenues in the second half of the current year at that business. However, the imminent roll out of 5G technologies is expected to result in increased demand in 2019. Our Redhall Jex business continues to perform well and has recently added electrical contracting to its portfolio of expertise.
The Board anticipates that the Group will deliver steady growth in 2019 supported by robust market demand and a strong pipeline of opportunities, coupled with an improvement in operating margins as the benefits of the transformation strategy start to be delivered.
The Group's results for the year ending 30 September 2018 are expected to be announced in early December 2018.
Contact details:
| Redhall Group plc |
|
| Wayne Pearson, Chief Executive Officer Simon Comer, Chief Financial Officer | Tel: +44 (0) 1924 385 386 |
| Buchanan |
|
| Mark Court, Sophie Wills, Gemma Mostyn-Owen | Tel: +44 (0) 20 7466 5000 |
| GCA Altium, NOMAD and Financial Advisors |
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| Tim Richardson, Simon Lord | Tel: +44 (0) 20 7484 4040 |
| WH Ireland, Broker |
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| Adrian Hadden, Ed Allsopp | Tel: +44 (0) 20 7220 1666 |