6th Jun 2014 06:48
LONDON (Alliance News) - Redhall Group PLC Chief Executive Richard Shuttleworth resigned Friday, after the company lowered its expectations for its current financial year for a second time in two months, hit by further delays in the timing of major contracts and as it took a more cautious line on the timing and impact of new business prospects.
The engineering support services company had warned on May 2 that it was experiencing delays converting major opportunities into contract awards, and had said at that time that it expected its performance to be below market expectations, although not materially so. Finance Director Chris Lewis-Jones stepped down at that time.
In May, it had said it still expected to report growth in revenue and underlying profitability in the year to September 30. However, the company said Friday that it now expects a result comparable to the one it reported in fiscal 2013.
"The group continues to have a strong relationship with its key customers. Although the programmes of work from our major clients are suffering substantial delays we are confident we will deliver our recovery plan albeit over an extended timeframe. The group is seeking to further broaden its customer base to reduce the reliance on existing major customers," Chairman David Jackson said in a statement.
Redhall said it has promoted Commercial Director Phil Brierley to be its new CEO, while interim Finance Director Chris Kelly has been appointed to the permanent position.
The company is going through a restructuring programme, and is reviewing various functions and businesses. It had said in May that it had undertaken a detailed analysis of assets on the balance sheet of its nuclear business, and as a result had increased exceptional provisions by about GBP500,000. It also said an exceptional provision of around GBP370,000 would be required to cover restructuring costs associated with the group finance function and its nuclear division.
Redhall will put out results for the first half of its current financial year in June 12.
By Steve McGrath; [email protected]; @SteveMcGrath1
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