Redhall Group PLC Full Year Trading Update (6645M)
17 October 2016 - 5:00PM
UK Regulatory
TIDMRHL
RNS Number : 6645M
Redhall Group PLC
17 October 2016
For immediate release 17 October 2016
Redhall Group plc
("Redhall" or the "Group")
Full Year Trading Update
Redhall Group plc (AIM: RHL), the high integrity manufacturing
and specialist services group, announces a full year trading update
ahead of its results for the year ended 30 September 2016. The
Group's financial results for the year are expected to be in line
with expectations.
High Integrity Manufacturing
Redhall's high integrity Manufacturing businesses, Booth
Industries and Jordan Manufacturing, have been successful in
securing significant new orders since the announcement of the
Group's interim results on 8 June 2016. This includes a further
GBP2.0m of rail infrastructure work and GBP4.6m of defence related
work. Jordan Manufacturing has secured over GBP2.5m of further
awards in the nuclear decommissioning market. The total order book
for our Manufacturing businesses now stands at GBP21m compared with
GBP17m at the half year.
The announcement of the Government's decision to proceed with
Hinkley Point C is potentially very significant for the Group.
Booth Industries and Jordan Manufacturing have already submitted,
or are in the process of submitting, a number of tenders for work
on this substantial project. The timing of work for these tenders
varies but it is anticipated that awards to the successful bidders
will be as early as mid-2017.
Government support for Hinkley Point C is also an indication
that its nuclear energy strategy may lead to the development of
further nuclear power stations providing work to manufacturing
businesses over a significant future period.
Specialist Services
Redhall's Specialist Services segment has performed well in the
financial year to 30 September 2016, enabling the Group to invest
in the growth of its Manufacturing businesses. Redhall Jex has
recently been successful in winning a GBP1.2m contract to install a
rubber micronisation plant for a joint venture partnership in Spain
and continues to support its blue chip customer base on capital and
maintenance projects.
In the interim results in June it was announced that BAE had
retendered the work packages that sat within the scope of Redhall
Marine. Redhall Marine has been informed that it will not be
awarded the new contract as it was unable to submit a compliant
tender as it considered that the new terms represented a material
increase in the level of risk. The interim contract that Redhall
Marine has been working under since December 2015 is expected to
end in January 2017.
Outlook
It is anticipated that the remaining businesses in Specialist
Services, Redhall Networks and Redhall Jex,
will continue to perform well in the current financial year.
The Board continues to be encouraged by the level of
opportunities and the growth in order book in the Group's chosen
markets within high integrity manufacturing. Consequently it
expects that the overall profitability for the year ending 30
September 2017 will remain in line with market expectations.
The Group's results for the year ended 30 September 2016 are
expected to be announced in early December 2016.
Contact details:
Redhall Group plc Tel: +44 (0) 1924
385 386
Phil Brierley, Chief
Executive
Chris Kelly, Group Finance
Director
Buchanan
Mark Court, Sophie Cowles, Tel: +44 (0) 20
Jane Glover 7466 5000
GCA Altium, NOMAD and
Financial Advisors
Paul Lines, Simon Lord Tel: +44 (0) 845
505 4343
WH Ireland, Broker
Adrian Hadden, Nick Prowting Tel: +44 (0) 20
7220 1666
This information is provided by RNS
The company news service from the London Stock Exchange
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