8th Jun 2016 07:58
LONDON (Alliance News) - Manufacturing and services firm Redhall Group PLC on Wednesday said it anticipates better profitability in the second half of its financial year after it said its pretax loss narrowed in the first six months despite lower revenue.
Redhall, which makes plant and equipment used in the nuclear and defence industries, said pretax loss for the six months to the end of March was GBP354,000, compared to a GBP1.4 million loss a year earlier.
Revenue declined slightly to GBP21.4 million from GBP22.7 million, but the group significantly cut administrative costs, improving its operating margin. The cuts came after a restructuring carried out last year to focus the group on its manufacturing and specialist services operations.
The fall in revenue was down to some design delays on major projects and the downturn in the oil and gas sector, but Redhall said its order book grew to GBP24.0 million at the end of March, up from GBP21.0 million at the end of December.
The stronger orders have been driven by manufacturing business, with defence and decommissioning contracts secured in the first half.
Redhall expects better profitability in the second half, driven by the strength of the manufacturing arm.
Shares in Redhall were up 3.9% to 6.62 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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