Redhall Group's losses deepen as contracts delayed
Manufacturing and specialist services business Redhall Group’s first half losses increased after contract delays took a toll on the company’s revenue.
In the six months leading up to 31 March, the AIM-traded company’s losses jumped 211% to £2.4m compared to the same period last year and revenue fell 23% to £14.7m after delays in the award of contracts Hinckley Point nuclear project.
Another factor in the company’s increased losses stems from exceptional operating costs of £0.5m spent on site closure and restructuring.
The company registered net debt of £4.5m, down from net cash of £0.1m on 20 September.
However, Redhall’s order book has grown to £37m, from £32m in December, exluding an £18m framework agreement won by its portfolio company Jordan Manufacturing for Sellafield.
Martyn Everett, chairman of Redhall, said: "Our order book and pipeline provide us with confidence for the group's future as a leading player in our core nuclear defence, decommissioning and new build markets. We also see strong demand for our food process manufacturing and installation and mobile networks businesses."
The company said it expects strong trading in the second half of the year to keep full year performance in line with expectations as the company starts to reap the rewards of its operational excellence programme.
As of 1514 BST, Redhall Group’s shares were down 7.04% at 8.25p.