7 Apr 2011 07:00
For immFor immediate release | 7 April 2011 |
Redhall Group plc
TRADING UPDATE
Redhall Group plc ("Redhall" or the "Group"), the specialist engineering support services group, is pleased to provide a trading update ahead of its interim results to be announced on 2 June 2011.
We are pleased to announce the award of new contracts worth in excess of £10m by AWE, British Energy, Chevron and Conoco Phillips. These are in addition to the key contract win with AWE, previously announced on 28 February 2011, which is expected to be worth £20m over the next four years. Together these contracts will increase the visibility of earnings for the second half of the financial year.
The Board believes that expectations following the announcement on 14 March 2011 will be met although there remains uncertainty around the quantum of any exceptional item in relation to the Vivergo Fuels Limited contract.
We continue to pursue our case against Vivergo Fuels Limited in order that we can proceed to a resolution as soon as possible. We will keep the market informed on this key issue.
Cashflow remains as anticipated and the current facility provided by HSBC is considered by the Board to be adequate for working capital requirements. The Group is forecast to be cash generative in the second half of the financial year.
This week we have announced the merger of our nuclear and defence businesses to form Redhall Nuclear Limited. The launch of the amalgamated business has been extremely well received by our client base and should further enhance the profile and prospects of the Group within this sector.
The Board is pleased to announce the appointment of Ian Butcher as Deputy Chairman with immediate effect. Meanwhile the Board continues to seek a permanent Chief Executive Officer for the Group.
For more information please contact:
Redhall Group plc Tel: +44 (0)1924 385 386
David Jackson, Chairman & Chief Executive
John O'Kane, Group Finance Director
Buchanan Communications Tel: +44 (0) 20 7466 5000
Tim Anderson / Isabel Podda /James Strong
Altium, Financial Advisers and Brokers to Redhall Tel: +44 (0) 845 505 4343
Phil Adams / Simon Lord / Paul Lines