Trading Update and Contract Wins

8 April 2010

Redhall Group plc

Trading Update and Contract Wins

Redhall Group plc ("Redhall" or the "Group"), the engineering support services group, is pleased to provide a trading update ahead of its interim results to be announced on 3 June 2010.

Trading in the six months to 31 March 2010 has been in line with management expectations and ahead of the comparative period for last year.

Whilst the overall market remains competitive, we have seen growth within the key areas of energy and defence where our technical capability and continually enhanced reputation enables us to win key strategic projects. The most significant contract win in the first half of the year involves the provision of fabrication and mechanical installation of pipe work for a new bio-ethanol plant at BP, Salt End for Vivergo Fuels Limited. We have already announced preferred bidder status and we are pleased to confirm that the contract is now signed and encompasses an enlarged scope with a total value of £30 million. The majority of the work will be concluded in the current calendar year.

In addition, we have also won substantial tankage and engineering work for Chevron over the next five years worth a total of £15 million. In civil nuclear, we have been successful with our bid to commission the new boiler park at Sellafield where we have won a contract valued at £3.2 million.

The process area remains challenging with reduced volumes compared to the first half of 2009. We continue to review our cost base and are reallocating resources to more productive areas for the short term.

Our net cash resources at the half year were £7.4 million (30 September 2009: £6.3 million) and our order book now stands at £130 million (30 September 2009: £115 million). The strength of this position gives us confidence that we will achieve our full year expectations.

David Jackson, Executive Chairman of Redhall Group plc, commented; "We are encouraged by our key contract win with Vivergo Fuels which reinforces our stated strategy of focusing on our core markets and competencies. This will be one of the largest bio-ethanol plants in the UK and strengthens our position in the energy market."

Enquiries:

Redhall Group plc 01924 385386

David Jackson, Executive Chairman

Simon Foster, Group Chief Executive

John O'Kane, Group Finance Director

Altium 0161 831 9133

Phil Adams / Paul Lines / Simon Lord

Buchanan Communications 020 7466 5000

Tim Anderson / Isabel Podda / James Strong