Redhall sells engineering division

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Engineering support services group​ Redhall has sold its engineering contracting subsidiary RESL to Cape for a headline consideration of £6.0m.

Wakefield-based Redhall said net debt will fall £5m following the sale.

The loss on disposal in respect of goodwill will be £5.2m.

Redhall said the disposal is a significant step in its mission to reduce exposure to contracting, focusing the business on higher margin manufacturing activities and improving working capital.

RESL, which provides a wide range of engineering contracting services to process industries, contributed £30.1m of revenue to the ​g​roup and an operating loss after exceptional items of £49​0,000 in the year ​to​ September ​30.