Redhall Group PLC Full Year Trading Update (6645M)

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: [phone] 
                               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

END

TSTUBOVRNSARARA

(END) Dow Jones Newswires

October 17, 2016 02:00 ET (06:00 GMT)