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31 Jul 2014 07:00
For immediate release | 31 July 2014 |
Redhall Group plc
("Redhall" or the "Group")
Trading Update
Redhall Group plc (AIM: RHL), the specialist engineering support services group, reports that, following an extensive and thorough review by the new executive team, the Board has revised its forecasts for the year ending 30 September 2014 and now expects to broadly break even before exceptional items at the operating profit level.
Manufacturing and Engineering businesses continue to operate well and produce acceptable levels of profitability, in line with Redhall's strategy of rebalancing the Group towards manufacturing. However, the impact of lower volumes in our Nuclear Contracting businesses will lead to significant losses for these businesses in the current year.
We believe that we have now recognised the full extent of the issues in Nuclear Contracting and action is being taken to put the businesses on a sounder footing. In addition we have provided for further exceptional contract losses and restructuring costs across the Group bringing our exceptional charges for the year to £2.7m. Our bankers, HSBC Bank plc, remain fully supportive of the Group.
The Group continues to have a strong relationship with its key customers and whilst we have experienced delays in work from our major clients we expect to deliver our recovery plan albeit over an extended timeframe.
Contact details:
Redhall Group plc | Tel: +44 (0) 1924 385 386 |
David Jackson, Chairman Phil Brierley, Chief Executive Chris Kelly, Group Finance Director |
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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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