Deals see Redhall look to future

REDHALL Group announced a string of new contracts as the engineer puts a tough two years behind it.

The Wakefield-based group said its nuclear division has won a deal worth a potential £50m with Britain’s Atomic Weapons Establishment (AWE). Its shares climbed 4.7 per cent to close at 66.5p.

Redhall Nuclear was chosen by AWE, which provides and maintains Britain’s nuclear deterrent, as a “strategic partner” to supply mechanical and electrical engineering services. The framework is expected to lead to contracts worth an estimated £50m over a potential four-year period.

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Redhall also said its manufacturing arm has won orders worth a total £7.5m across three contracts for blast and fireproof doors and structures. The biggest of these is a £4.1m deal for Hyundai Heavy Industries to supply BP’s Clair Ridge project in the North Sea.

Redhall added it has reached a “satisfactory” agreement on a contract at Fellside Boiler Park at Sellafield. The group is rebuilding after a series of troublesome contracts, such as the Vivergo biofuel plant in East Yorkshire, led to two years of losses.

Chief executive Richard Shuttleworth said: “We are delighted to announce some significant contract wins across the group, recognising our growing status within both the nuclear industry and the oil and gas supply chain in providing specialist products and services into technically demanding and high-hazard environments.

“The settlement of the final account on the Fellside Boiler Park further demonstrates the positive progress being made to resolve the legacy issues within the business by the new management team.”

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