16 Dec 2013 16:03
|
Redhall Group plc
("Redhall" or the "Group")
Judgement in Favour of Redhall
and
Group Trading Update
Redhall Group plc, the specialist engineering support services group, is pleased to announce it has successfully defended the action brought by Vivergo Fuels Limited ("Vivergo") for which judgement was handed down earlier this afternoon, and also provides an update on Group trading.
Vivergo Judgement
The judgement in the court case brought by Vivergo has found in favour of Redhall in ruling that Vivergo was in repudiatory breach of the contract with Redhall's subsidiary Redhall Engineering Solutions Limited ("RESL") and that the contract was unlawfully terminated. In addition, it was determined that RESL was entitled to an overall extension of time on the contract of 24 days. Whilst the overall extension of time is below our expectations it provides a framework to quantify our claim and the award precludes Vivergo from making any claim against RESL for the additional costs associated with the termination of RESL's contract.
It is our intention to enter into discussions with Vivergo with the objective of reaching a financial settlement arising from the judgement as soon as possible.
Trading Update
Trading for the year ended 30th September 2013 was broadly in line with market expectations. The start of the year has seen some delays to projects in Manufacturing and the volumes of work from the two key nuclear framework contracts have not yet returned to historic levels. The current order book stands at £115m and we anticipate converting some of our high level prospects during the first quarter of calendar 2014. Given our position in key nuclear markets, we remain well placed to secure orders in the UK's nuclear new build programme through our joint venture arrangements with ACPP and Baumert but do not expect any work to commence until 2015.
As previously announced we intend to release our preliminary annual results by the end of January 2014 once the impact of the judgement in the Vivergo case has been fully assimilated and its effect on our financial statements has been finalised.
Contact details:
Redhall Group plc | Tel: +44 (0) 1924 385 386 |
David Jackson, Chairman | |
Richard Shuttleworth, Chief Executive | |
Chris Lewis-Jones, Group Finance Director
| |
Buchanan | Tel: +44 (0) 20 7466 5000 |
Mark Court, Fiona Henson, Sophie Cowles
| |
Arden Partners (Joint Broker) | |
Chris Hardie, Director Corporate Finance | Tel: +44 (0) 20 7614 5929 |
Ed Walsh, Head of Sales
| Tel: +44 (0) 20 7614 5964 |
Charles Stanley Securities (Joint Broker) | Tel: +44 (0) 20 7149 6000 |
Russell Cook, Director Corporate Finance | |
Paul Brotherhood, Sales Trading
| |
Altium, NOMAD and Financial Advisors | Tel: +44 (0) 845 505 4343 |
Phil Adams / Simon Lord / Paul Lines |