Trading Update

Redhall Group plc

("Redhall" or the "Group")

Trading Update

Redhall Group plc, the specialist engineering support services group, today provides the following update.

Trading in the second half of the financial year ending 30 September 2013 is anticipated to be below management expectations with profits below market consensus due to activity levels and margins in the Nuclear segment and in certain aspects of the Engineering segment continuing to be adversely affected. We announced in our half-year results the award of two new framework contracts within the Nuclear segment but we have experienced a slower than anticipated order intake on these contracts. Steps have been taken to resize the businesses to suit the current activity levels and this has resulted in further exceptional restructuring costs in the second half-year.

Activity levels and opportunities in the Manufacturing segment are currently promising, but this together with the cash cost of restructuring has led to some increase in the Group's working capital requirements although the total borrowings remain within current facilities. Our bankers, HSBC, remain supportive of the Group.

We continue to await the judgement on the Vivergo case which was heard in November last year. We are hopeful of a judgement in the near future, and will update the market as appropriate.

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