Contracts wins as Redhall fights on over biofuel contracts

The Wakefield-based company said it won new contracts from AWE, British Energy, Chevron and Conoco Phillips. These are on top of a key contract win with AWE announced in February, which is expected to be worth £20m over the next four years.

“Together these contracts will increase the visibility of earnings for the second half of the financial year,” said the group.

Redhall added it has appointed Ian Butcher as deputy chairman while its search for a permanent chief executive goes on.

Redhall’s contract to build the biofuel project at Saltend was terminated last month by Vivergo Fuels. Today it said the level of exceptional costs to the group are uncertain.

The dispute left 400 workers out of work. Redhall has said £14m of the contract’s costs remain unpaid, plus damages, and warned trading profits will be hit by more than £1.7m.

However, Vivergo said the contract was halted over “unacceptable” performance, adding it does not believe there are grounds for a claim.

“We continue to pursue our case against Vivergo Fuels Limited in order that we can proceed to a resolution as soon as possible,” said Redhall. “We will keep the market informed on this key issue.”

The group added cashflow remains as it expected and its current facility provided by HSBC is adequate for its working capital requirements. It expects to be cash generative in the second half of its financial year.

Redhall said it announced plans this week to merge its nuclear and defence businesses to form Redhall Nuclear Limited.

“The launch of the amalgamated business has been extremely well received by our client base and should further enhance the profile and prospects of the group within this sector,” it said.