2 May 2014 07:00
For immediate release | 2 May 2014 |
Redhall Group plc
("Redhall" or the "Group")
Trading Update and Directorate Change
Redhall Group plc (AIM: RHL), the specialist engineering support services group, reports that following the announcement of 26 March 2014, and as part of the ongoing restructuring of the Group's finance operations to improve its systems and controls, the Board extended the review of retentions to a detailed analysis of assets on the balance sheet of the Nuclear business. This review has identified that the exceptional provision previously taken is insufficient and will need to be increased by approximately £500k. In addition, the Board has identified that an exceptional provision of approximately £370k will be required to cover restructuring costs associated with the finance function across the Group and the Nuclear division. The Board has engaged its auditors, KPMG, to verify the work undertaken as part of the half yearly review. The Company expects to announce its results for the six months to 31 March 2014 in the week commencing 9 June 2014.
Trading to date remains in line with the Board's expectations, but further delays are being experienced converting major opportunities into contract awards. The Board considers that the impact of these further delays will result in a deterioration in the performance of the Group to a level below current market expectations but not materially so. The Board still expects to report growth in revenues and underlying profitability in the twelve months to September 2014.
The Board announces that Chris Lewis-Jones is standing down as Group Finance Director and Company Secretary with immediate effect and Chris Kelly has been appointed Interim Finance Director. Chris Kelly was previously Finance Director of Town Centre Securities PLC, a fully listed public company, prior to that a partner in Ernst & Young LLP. Chris brings to this position a wealth of experience and commences on 6 May 2014.
Redhall's Chief Executive, Richard Shuttleworth, commented: "The Group continues to make progress in its trading. I am satisfied that we have now resolved the issues relating to legacy contracts and remain confident of the future."
Contact details:
Redhall Group plc | Tel: +44 (0) 1924 385 386 |
David Jackson, Chairman |
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Richard Shuttleworth, Chief Executive |
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Buchanan | Tel: +44 (0) 20 7466 5000 |
Mark Court, Fiona Henson, Sophie Cowles
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Arden Partners (Joint Broker) |
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Chris Hardie, Director Corporate Finance | Tel: +44 (0) 20 7614 5929 |
Ed Walsh, Head of Sales
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Charles Stanley Securities (Joint Broker) | Tel: +44 (0) 20 7149 6000 |
Russell Cook, Director Corporate Finance |
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Paul Brotherhood, Sales Trading
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Altium, NOMAD and Financial Advisors | Tel: +44 (0) 845 505 4343 |
Phil Adams, Simon Lord, Paul Lines |
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