1st Oct 2009 07:00
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For Immediate Release |
Thursday, 1 October 2009 |
Redhall Group plc
("Redhall" or the "Group")
Board Changes and Pre-Close Trading Update
Redhall Group plc, the specialist engineering support services group, announces a pre-close trading update for the year ended 30 September 2009 and the following Board changes.
Board Changes
Simon Foster is appointed Group Chief Executive.
David Jackson continues as Group Executive Chairman.
These changes will take effect from 1 November 2009.
Tony Price has resigned from his position as Chief Operating Officer and as a Board Director and left the Group's employment on 30 September 2009. The Board thanks him for his contribution and wish him every success in the future.
Trading Update
The Group's trading results for the year will be announced on 3 December 2009 and it is anticipated that profits will be marginally below current market expectations. This is attributable to some reduction in expected volumes in the nuclear and chemical areas.
Within the Energy division, oil and gas activities have performed strongly with margin improvements. Nuclear revenues have continued to be held back in the short term by widely publicised delays in spending by the NDA. Management is confident these delays are temporary and Redhall continues to position itself strategically for longer term opportunities across the sector.
The Defence division has continued to grow with particular emphasis on major projects at the Atomic Weapons Establishment. The Group has recently secured the final phases of its design and manufacture contract for Project HEFF increasing the contract value to £9 million.
The Process division has experienced some margin and volume pressures as clients have deferred investment in response to economic conditions.
The balance sheet and cash performance remain robust. We have generated £4.1m of cash in the period and at 30 September 2009 the Group had net cash balances of £6 million. The order book has also increased to £117 million.
David Jackson, Chairman of Redhall, commented:
"Despite the current wider economic challenges, I expect growth in 2010 albeit more constrained in the short term. The nature and breadth of our activities and the Group's balance sheet strength and cash position give me confidence that we will continue to grow.
I am delighted to announce Simon Foster's appointment as Group Chief Executive and welcome John O'Kane to the Board as Group Finance Director. The strengthened management team is now in place to take the business to its next stage."
For more information please contact:
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Redhall Group plc |
Tel: +44 (0)1924 385 386 |
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David Jackson, Chairman & Chief Executive |
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Simon Foster, Chief Financial Officer |
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Altium (Nominated adviser & Broker) |
Tel: +44 (0)161 831 9133 |
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Phil Adams / Simon Lord / Paul Lines |
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Buchanan Communications |
Tel: +44 (0) 20 7466 5000 |
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Tim Anderson / James Strong |
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