Redhall Group PLC Contract Awards and Trading Update (7734H)
March 15 2018 - 3:01AM
UK Regulatory
TIDMRHL
RNS Number : 7734H
Redhall Group PLC
15 March 2018
For immediate release 15 March 2018
Redhall Group plc
("Redhall" or the "Group")
Hinkley Point C Contract Awards and Trading Update
Redhall Group plc (AIM: RHL), the high integrity manufacturing
and services group, is pleased to announce that its subsidiary,
Jordan Manufacturing Limited (JML), has signed three contracts with
Balfour Beatty for the supply of specialist manufactured metal
products for incorporation in the marine works at Hinkley Point C.
These contracts substantially increase the scope of work for which
JML was named preferred bidder.
The Group is delighted to have finally agreed these material
contracts, but notes the timing has been delayed due to changes in
scope, programme and design. Delays in large orders can have a
significant impact on reported results and this delay, combined
with those in other contract programmes and awards at our
manufacturing businesses, has led the Board to conclude that the
Group's financial performance for the current financial year, which
will naturally be second half weighted, is likely to be adversely
affected.
Despite issues with the timing of contract awards, our forward
order book continues to demonstrate the positive momentum in the
Group. The order book has increased from GBP32m to GBP35m since
December 2017. In addition, the Group announced in December 2017
that JML had secured a framework valued at GBP18m over three years
to manufacture containment systems and associated process equipment
for Cavendish Nuclear under a teaming agreement which is not
included in the order book.
The Chief Executive of Redhall, Phil Brierley, commented:
"We are delighted to have secured these important contracts with
Balfour Beatty and look forward to making a significant
contribution to the Hinkley Point C project. Together with our
framework to manufacture containment systems for Cavendish Nuclear,
we are clearly demonstrating the market's confidence in the Group's
capabilities to deliver complex high integrity manufactured
product.
"Whilst it is disappointing that the timing of contract awards
has impacted our current year expectations, these are our first
significant orders on what is a critical infrastructure project for
the UK. We believe these contracts will be the first of many on the
Hinkley Point C project and in the nuclear sector as a whole in the
coming years."
Contact details:
Redhall Group plc Tel: +44 (0) 1924
385 386
Phil Brierley, Chief Executive
Chris Kelly, Group Finance Director
Wayne Pearson, Chief Operating Officer
Buchanan, PR Adviser Tel: +44 (0) 20 7466
5000
Mark Court, Sophie Wills, Gemma
Mostyn-Owen
GCA Altium, Financial and Nominated
Adviser
Tim Richardson, Simon Lord Tel: +44 (0) 20 7484
4040
WH Ireland, Broker
Adrian Hadden, Ed Allsopp Tel: +44 (0) 20 7220
1666
This information is provided by RNS
The company news service from the London Stock Exchange
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