2nd May 2014 09:31
LONDON (Alliance News) - Redhall Group PLC Friday said it is trading in line with expectations but said further delays are being experienced converting major opportunities into contract awards.
It said it now expects these delays to result in a deterioration in its performance to a level below current market expectations, but not materially so.
The specialist engineering support services group said it still expects to report growth in revenue and underlying profitability in the year to September 2014.
In a trading update, Redhall said as part of an ongoing restructure of its financial operations it extended the review of retentions to include a detailed analysis of assets on the balance sheet of its Nuclear business.
Redhall said the review has identified that the exceptional provision previously taken is insufficient and will need to be increased by around GBP500,000.
In addition, an exceptional provision of around GBP370,000 will be required to cover restructuring costs associated with the finance function across the group and its Nuclear division.
The company also said Finance Director Chris Lewis-Jones has stepped down with immediate effect. Redhall has appointed former Town Centre Securities PLC Finance Director Chris Kelly as interim finance director.
The company expects to announce its results for the six months to March 31 in the week commencing June 9.
The stock was trading at 41.00 pence Friday morning, down 13%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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