Redhall Group PLC Full Year Trading Update (9302B)
26 Septembre 2018 - 8:01AM
UK Regulatory
TIDMRHL
RNS Number : 9302B
Redhall Group PLC
26 September 2018
For immediate release 26 September 2018
Redhall Group plc
("Redhall" or the "Group")
Full Year Trading Update
At the time of the announcement of the Group's half year results
in June 2018, the Board's expectations for the year ending 30
September 2018 were based on strong trading in the final quarter
and margin improvements obtained from our operational excellence
programme. Unfortunately, delays on a number of key projects
outside of the Group's control and slower than expected operational
efficiency gains mean the Board now anticipates that the Group's
full year performance will be materially below its previous
expectations. Overall, market conditions remain robust in the
majority of the Group's core markets.
The Group continues to pursue its transformation strategy,
focusing on operational excellence and driving its pipeline of
opportunities in target markets. The Group's order book as at 31
August 2018 was GBP23 million (31 March 2018: GBP29 million using
the same basis of measurement). The order book is supported by a
strong pipeline of opportunities.
The award of the Hinkley Point C works for Jordan Manufacturing
was a major highlight of the first half, and deliveries to site
commenced in quarter four of this financial year. We have also made
good progress on the implementation of our "runners and repeaters"
strategy across a more diverse range of sectors which is a key
element of improving the resilience of this business. However,
current year revenues were impacted by the timing of contract
deliveries.
In Booth Industries, traction of our business transformation
strategy has been slower than expected which, coupled with project
slippages, has impacted performance. Defence and infrastructure
markets continue to represent a significant proportion of the
pipeline. We are also seeing more opportunities to deliver high
performance, multi-function doors into new markets, such as
automotive test facilities and high-profile building projects. We
remain confident of securing many of these projects over the next
few months.
Reduced market activity at Redhall Networks has resulted in
lower revenues in the second half of the current year at that
business. However, the imminent roll out of 5G technologies is
expected to result in increased demand in 2019. Our Redhall Jex
business continues to perform well and has recently added
electrical contracting to its portfolio of expertise.
The Board anticipates that the Group will deliver steady growth
in 2019 supported by robust market demand and a strong pipeline of
opportunities, coupled with an improvement in operating margins as
the benefits of the transformation strategy start to be
delivered.
The Group's results for the year ending 30 September 2018 are
expected to be announced in early December 2018.
Contact details:
Redhall Group plc
Wayne Pearson, Chief Executive Officer Tel: +44 (0) 1924 385 386
Simon Comer, Chief Financial Officer
Buchanan
Mark Court, Sophie Wills, Gemma Mostyn-Owen Tel: +44 (0) 20 7466 5000
GCA Altium, NOMAD and Financial Advisors
Tim Richardson, Simon Lord Tel: +44 (0) 20 7484 4040
WH Ireland, Broker
Adrian Hadden, Ed Allsopp Tel: +44 (0) 20 7220 1666
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END
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