Redhall Share Discussion Threads

[callumross] 14/9/2015 11:33

LONDON (Alliance News) - Analysts at WH Ireland say Redhall has been "nothing short of disastrous" for shareholders, but says the new management has begun delivering the first stage of the turnaround of the engineering and manufacturing group. WH Ireland initiates coverage of Redhall with a Buy rating and a price target of 20.0 pence. "Redhall has been nothing short of disastrous for shareholders in recent years, with net debt now greater than twice the market cap. However, as reported in the recent interim results, under the new management team the first stage of the turnaround has been delivered, on budget and ahead of schedule," says John Cummins, analyst at WH Ireland. Cummins says he expects Redhall to return to making an operating profit in 2016, but the current "transitionary" financial year to end 2015 will result in the companies debt rising to GBP13.7 million, but the company is working on its costs. "The new management team has reduced the cost base by collapsing the previous divisional structure, centralising support functions, beginning to remove central overhead, exiting the site-based nuclear contracting market, and disposing of RESL for GBP6.0 million," adds Cummins. "Whilst clear risks remain, not least the current level of gearing, we see significant upside potential should the strategy be executed successfully," says Cummins. The company also has "several sizeable" long-term manufacturing contracts which are expected to come out to tender in the next 12-18 months across the nuclear new-build, nuclear decommissioning, and defence markets. "We believe that Redhall is very well placed to benefit given the group’s track record in these segments," says Cummins. Redhall shares were down 4.8% to 10.00 pence per share on Thursday afternoon.

[value viper] 11/9/2015 11:13

you would hope so ?! even directors have (finally) got the cheque books out there.
as meij said, backers seem to have bought into the future potential..maybe they had little choice but to support it.
what a ride ; debt to equity swap now, still has the (high risk) "turnaround" appeal I guess.

[300808] 11/9/2015 10:50

Surely the low will be 5p? ?

[value viper] 11/9/2015 09:33

at least we now know why directors havent bought in yet ?...hhhmm
bit cheeky really but pleased nonetheless to see CEO going for £40k worth finally
(plus option awards galore granted ?!?!)
its not a PW .....quite a carry on all this BUT still to play for ?!

[this_is_me] 11/9/2015 09:22

Killing off current shareholders. Will the turkeys vote for Christmas? I was tempted to bottom fish these at 10p; I am glad I passed.

[21trader] 24/7/2015 15:46

Does not seem to make any difference atm mm seem to have small amount of stock
to play with currently

[value viper] 24/7/2015 14:20

stuck record i know : director deals would help this higher now

[meijiman] 24/7/2015 13:24

Henderson partly calling the shots here I recall. But I think their best plan is to back a management turnaround which boosts the share price. At least that gives them options.Redhall has some decent blue chip customers - main issue was management failings on contracting. That should be history now. So onward and upward.

[21trader] 24/7/2015 12:33

Double positive whammy was the 500k buyer yesterday probably had to ring around
and got matched with the slightly larger seller at 10.9p which cleared the overhang at the same time.

[meijiman] 24/7/2015 12:07

yes looks like some nosy buying-hoping to find a bottom...in the share price!

[value viper] 24/7/2015 11:42

interesting little move we currently seeing

[meijiman] 21/7/2015 11:27

It is so bombed out that even a bit of good news should do wonders for the share price I agree -it would be nice to see directors buying in here.

[value viper] 21/7/2015 11:15

hadn't gone unnoticed ! still, want some director purchases !

[21trader] 21/7/2015 11:07

Somebody just paid a premium all buying last few days

[mudbath] 04/7/2015 20:56

Thanks for that Value Viper.
Nevertheless,I will remain on the sidelines,for now.

[value viper] 02/7/2015 15:08

out today from the co broker fwiw :

Analysts at WH Ireland say Redhall has been "nothing short of disastrous" for shareholders, but says the new management has begun delivering the first stage of the turnaround of the engineering and manufacturing group.

WH Ireland initiates coverage of Redhall with a Buy rating and a price target of 20.0 pence.

"Redhall has been nothing short of disastrous for shareholders in recent years, with net debt now greater than twice the market cap. However, as reported in the recent interim results, under the new management team the first stage of the turnaround has been delivered, on budget and ahead of schedule," says John Cummins, analyst at WH Ireland.

Cummins says he expects Redhall to return to making an operating profit in 2016, but the current "transitionary" financial year to end 2015 will result in the companies debt rising to GBP13.7 million, but the company is working on its costs.

"The new management team has reduced the cost base by collapsing the previous divisional structure, centralising support functions, beginning to remove central overhead, exiting the site-based nuclear contracting market, and disposing of RESL for GBP6.0 million," adds Cummins.

"Whilst clear risks remain, not least the current level of gearing, we see significant upside potential should the strategy be executed successfully," says Cummins.

The company also has "several sizeable" long-term manufacturing contracts which are expected to come out to tender in the next 12-18 months across the nuclear new-build, nuclear decommissioning, and defence markets.

"We believe that Redhall is very well placed to benefit given the group’s track record in these segments," says Cummins.

Redhall shares were down 4.8% to 10.00 pence per share on Thursday afternoon.

[value viper] 22/6/2015 15:44

a few nibblers today ; still no Directors dipping in which isn't great ;
nor any further RNSs

[value viper] 11/6/2015 15:50

let's wait and see ; i'm not convinced directors have moved (yet).
unless there is volume I cant see.
but 10 bid is alot better than 8 !

[21trader] 11/6/2015 15:39

Orys must be out now.

We knew it was games earlier now the price is very strong. 10.99p to buy so as close to full offer as you can get and bidding close to mid price.

Was the 100k earlier a director or just the regular 100k buyer ?

[meijiman] 11/6/2015 10:37

Yes the statement re the disposal to Cape gave considerable grounds for some limited optimism.This tone seems more subdued. We need broker note and as you say VV some director buying would not go amiss.

[value viper] 11/6/2015 10:18

i would really like to see directors buying today - very important to show confidence

[21trader] 11/6/2015 10:08

Not surprise me if this finishes up.

Full offer buys and the real bid is way higher than what the mm are showing currently.

[21trader] 11/6/2015 08:06

lol

Hundreds of thousands of buys this week v little selling and 1 x 15k sale on the results and they slash the price mm's are just unbelievable at times I hope nobody sells at 9p because that is what they want for their profits

[21trader] 11/6/2015 07:53

Standard set of results for a turnaround stock.

"we anticipate an enhanced level of profitability in the second half of the year"

That will do.