ENGINEERING firm Redhall Group announced the departure of its chief executive this morning as it issued a profits warning.
The Wakefield-based group said chief executive Richard Shuttleworth had resigned with immediate effect and will be replaced by group commercial director Phil Brierley.
Redhall said that it had revised its forecasts and had “moderated its expectations” ahead of its half year results, which will be announced next Thursday.
Interim finance director Chris Kelly, the former finance director of Town Centre Securities, has been appointed to group finance director.
In a trading update, Redhall said the review was made following further delays in the timing of major contracts and a more “cautious assessment of the timing and impact of new business prospects”. It said its results for the year will be similar to those of last year.
Redhall made a pre-tax profit of £1.1m before £10.9m of exceptional items following an exceptional charge of £7.7m to cover the cost of the Vivergo Fuels settlement in the year to September 30, 2013.
The exceptional items resulted in an overall pre-tax loss of £9.8m, more than double the £4.7m loss reported the year before.
Revenues fell from £120m to £113m.
Chairman David Jackson, said: “The group continues to have a strong relationship with its key customers. Although the programmes of work from our major clients are suffering substantial delays we are confident we will deliver our recovery plan albeit over an extended timeframe. The Group is seeking to further broaden its customer base to reduce the reliance on existing major customers.”