Wakefield engineering services group Redhall "confident" in future after £1.6 million restoration contract
Redhall Group plc, the specialist engineering support services group, is reportedly confident in its future after securing a major contract win.
This will bring their order book up to £100 million, and they have made over £100k in the disposal of a Northern Ireland subsidiary.
David Jackson, chairman of Redhall, will make the following statement at its Annual General Meeting today: “Trading in the first half will be marginally ahead of last year with delays in some of our key projects leading to a greater second half weighting in our profitability. However, the Board remains confident of meeting management expectations for the full year.
“We have recently been awarded a contract for Dounreay Site Restoration Limited valued at £1.6m resulting in our order book now standing at approximately £100 million with the potential for further substantial Defence orders.
“The Group’s core markets continue to show good growth and management remains focused on converting opportunities and adding to the order book.
“Following our announcement of 6 February 2014 regarding the disposal of CINIL, our Northern Ireland subsidiary, we can now confirm this will result in a loss of approximately £132,000, including legal and professional charges.
“In addition, as part of our ongoing strategy to reduce our investment in working capital, we have reviewed the likely recovery of retentions relating to legacy business and intend to create a provision to cover an anticipated shortfall.
“We anticipate that the combined effect of these two factors will result in an exceptional charge not exceeding £500,000.”