Redhall losses narrow as order book grows

Manufacturing and specialist services company Redhall Group posted its preliminary results for the year to 30 September on Wednesday, with significant order book and profit growth achieved in its latest stage of transformation to what the board called a “high integrity” manufacturing group.

The AIM-traded firm said the manufacturing order book grew by 109% to £23m, while adjusted operating profit of £0.9m swung from a £0.7m loss, slightly ahead of market expectations.

Revenue on continuing operations was down marginally at £43.8m, from £44.7m.

Adjusted operating profit before exceptional and central costs of was significantly increased at £3.3m, from £1.2m.

The group loss after exceptional items and losses of discontinued businesses was £1.7m, narrowing significantly from £12.2m.

It said the group order book of £29m was up from £21m, benefiting from major contract awards in defence, nuclear decommissioning and infrastructure sectors.

An investment of £0.8m was made during the year into manufacturing capability and new product development, and a further £0.4m was approved since year-end.

It added that the Hinkley Point C new-build nuclear power plant project was providing major tender opportunities.

“I am pleased to report that Redhall has more than doubled its manufacturing order book to £23m and has achieved an adjusted operating profit of £0.9m in FY16,” said chairman Martyn Everett.

“We are on track to create a high integrity manufacturing business engaged in the defence, nuclear decommissioning, infrastructure and nuclear new build sectors and will focus this year on delivering further improvements in profitability and operational performance and building a robust platform for a sustainable period of growth.”