Trading Update

For Immediate Release 20 October 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 preliminary results announcement on 8 December 2011.

Trading in the second half of the financial year ended 30 September 2011 has been in line with management expectations. Net debt at the year end at £10.2 million was also in line with expectations and the Group was cash generative in the second half of the financial year.

The Group announces that its subsidiary, Redhall Engineering Solutions Limited ("RESL") has won its latest adjudication against Vivergo Fuels Limited ("Vivergo") and has been awarded an initial payment of £0.7 million for damages arising from Vivergo's contract repudiation. Vivergo have started Court proceedings to challenge the adjudicator's first decision regarding unlawful termination of the contract but the Board of Redhall remains confident of the outcome of any such proceedings and is supported by strong expert legal opinion. Redhall continues to pursue Vivergo for the outstanding monies on this contract. The Board is assessing the recoverability of these monies and will provide an update in its preliminary results announcement.

David Jackson, Chairman and Chief Executive, commented: "I am pleased to report that tendering activity in all sectors of the Group is high, particularly in the nuclear sector. We look forward to reporting our progress on these tenders."

Enquiries:

Redhall Group plc 01924 385386

David Jackson, Chairman & Chief Executive

John O'Kane, Group Finance Director

Altium 0161 831 9133

Phil Adams / Paul Lines / Simon Lord

Buchanan Communications 020 7466 5000

Tim Anderson / Isabel Podda / James Strong