Sign In
7 Apr 2009 07:00
For Immediate Release 7 April 2009
Redhall Group plc
Trading Update
Trading
Overall trading continues in line with expectations for the current financial year. Since our latest trading update we have made noteworthy progress in the following areas.
We are pleased to announce that as part of its UK growth strategy in the oil and gas sector, Chieftain Group plc ("Chieftain") has received a letter of intent for an engineering services contract at a key onshore oil installation on the Humber Bank. Work has commenced and the contract is anticipated to have a value in excess of £4 million in this financial year. This is the first major oil and gas contract in the area for the Group and provides a solid foundation for the future.
Overall market conditions remain robust. The MOD nuclear market has remained buoyant with continued growth in our reputation leading to an increasing involvement in major projects. Steels Engineering has been awarded its first enabling works contract on a new build project. The civil nuclear market has seen an impact from the structural changes at Sellafield over the past six months with a reduction in contract awards. However, recent contract awards totalling approximately £5 million and a high level of current tender activity evidence a change in this position.
The Engineering Services division has performed well despite the lower crude oil price having some impact on discretionary spend and this is expected to continue for the remainder of the financial year. The Group is benefitting from its continued focus on engineering infrastructure programmes and key regulatory driven capital projects.
We have continued to be cash generative since the 2008 year end and closed the half year with net cash of approximately £5 million.
The Group will announce its interim results on 4 June 2009.
David Jackson, Chairman, commented :
"We are pleased with the continuing strength of the Group's performance. We believe that our strategy of targeting leading positions in key regulatory markets such as nuclear and the wider energy sector provides good opportunities for longer term sustainable growth for the Group."
For more information please contact:
Redhall Group plc Tel: +44 (0)1924 385 386
David Jackson, Chairman and Chief Executive
Simon Foster, Chief Financial Officer
Altium, Financial advisers and Brokers to Redhall Tel : +44 (0) 161 831 9133
Phil Adams/Simon Lord/Paul Lines
Buchanan Communications Tel : +44 (0) 20 7466 5000
Tim Anderson / Isabel Podda / Ben Romney
Follow the stocks
