Investor’s further backing for Redhall

Engineering support services group Redhall has received a boost with the news that Henderson Volantis Capital has entered into an agreement with HSBC to purchase £10m of the group’s bank facility.

Henderson currently owns 28 per cent of Redhall.

Martyn Everett, chairman of Redhall, said: “We are pleased that our major shareholder, Henderson, has taken this opportunity to invest further in Redhall. This clearly demonstrates their confidence in the group and its prospects.”

Analyst Andy Smith, at Charles Stanley, said: “This is welcome news as not only does it diversify the lending base but it also follows on from the new strategy outlined in December with Redhall focusing on its high margin manufacturing division, reducing the volume of low-margin contracting operations, initiating a £1.2m cost-cutting programme and simplifying the management structure.”

Last month Wakefield-based Redhall said it will downsize its workforce as it refocuses the group on higher margin manufacturing particularly in the nuclear and oil & gas markets.

Following the completion of a detailed review led by chief executive Phil Brierley, the group said it has considerable expertise in the design, manufacture, installation and commissioning of fire and blast-resistant doors, window and wall systems.