Redhall losses widen but “strong pipeline” in place

31 January 2019

Redhall losses widen but “strong pipeline” in place

Losses have widened at Redhall Group but the Wakefield-based manufacturing and specialist services business has said market conditions are encouraging in its core sectors, with a "strong pipeline of opportunities" in place.

The listed company reported revenue of £37.8m for the year ended 30 September 2018, down 3 per cent from £38.9m in 2017. However, excluding revenue associated with ceased operations, group turnover increased by £5m.

Group operating losses widened to £3.8m from £300,000, following exceptional costs of £3.9m. Adjusted operating profit on continuing operations was £200,000, compared to £1.4m the year before.

Redhall was affected by delays on a number of key projects outside of its control and slower than expected operational efficiency gains.

The group's order book at the year end stood at £21m, an increase of 20 per cent on the end of the prior year.

Martyn Everett, chairman of Redhall, said: "Market conditions remain encouraging in the majority of the group's core sectors and the group benefits from a secure order book and a strong pipeline of opportunities.

"We continue to pursue our strategy of the operational transformation of our manufacturing business and believe that this pursuit of operational excellence will deliver long-term success for the group."

Earlier this month (January 2019), Redhall secured £2m short-term financing facilities from two major shareholders.