Contract delays for Redhall results in 'materially lower' year-end results

Manufacturing and specialist service provider Redhall Group announced on Wednesday that results for its trading year ended 30 September would be "materially lower" than expected as the firm experienced several "unforeseen delays" on contract deliveries.

Redhall said that previously forecast figures had been based off a "strong second half," principally driven by an increase in manufacturing at its Booth Industries subsidiary and the beginning of work projects for Hinkley Point C by Jordan Manufacturing.

The group said that while it had won the "attractive" contracts, the projects themselves had been subject to "external client delays" that pushed the Hinkley nuclear plant programme back to October, moving it into the next fiscal year.

Other companies in did perform better, according to the update, "Redhall Jex has benefited from the previously announced large contract award from one of its major clients which, with increased scope, has run into the current year. Redhall Networks continues to perform well, meeting expectations in a buoyant market."

Redhall said it was "confident" that it would return to profitability in its 2018 financial year thanks to a "high level" of pipeline opportunities being carried into the next year.

As of 1000 BST, shares had tumbled 20.27% to 7.47p.