Redhall issues profit warning

The Wakefield-based firm said activity levels and margins in the nuclear sector and in certain aspects of the engineering sector continue to be adversely affected.

The firm won two new framework contracts within the nuclear sector in the first half of the financial year but said the order intake on those contracts had been slower than anticipated.

In a statement it said: “Steps have been taken to resize the businesses to suit the current activity levels and this has resulted in further exceptional restructuring costs in the second half-year.”

It added: “Activity levels and opportunities in the manufacturing segment are currently promising, but this together with the cash cost of restructuring has led to some increase in the group’s working capital requirements although the total borrowings remain within current facilities. Our bankers, HSBC, remain supportive of the group.”

Redhall also commented on its on going dispute with Vivergo.

It has been pursuing Vivergo for £16.7m following the renewable energy firm’s decision to terminate the engineering company’s work at a new biofuels plant at Saltend in 2011.

“We continue to await the judgement on the Vivergo case which was heard in November last year,” Redhall said.

“We are hopeful of a judgement in the near future, and will update the market as appropriate.”