Redhall wins major Sellafield contract

Wakefield-based Redhall said this is the first major award from Sellafield since new management under Helen Simms took control of its nuclear business at the beginning of last year.

Redhall’s chairman David Jackson said: “With other opportunities currently available I am looking forward to a more productive chapter from our decommissioning and waste management activities.”

He was speaking this morning as the group announced a 33 per cent increase in underlying pre-tax profits to £1.3m for the six months to March 31.

Revenues fell from £64.3m to £60.0m although last year’s figures included £11.9m of Vivergo turnover. On a like-for-like basis, Redhall said turnover was up 14 per cent.

Mr Jackson said the Vivergo contract dispute remains unresolved.

Redhall made a provision of £8.4m last year after the premature termination of its contract with Vivergo for pipework at a new biofuels plant at Saltend near Hull in March 2011.

Speaking about the dispute today Mr Jackson said: “While our preferred route is for a negotiated settlement, we are resigned to resolving this issue through the courts, if necessary, and this process may take a number of months.”

He added that the result for the first half is an improvement on last year, but he believes the group is capable of a much better performance.

“We have strengthened our commercial and operational management over the last six months to address the issues that have affected our financial performance,” he said.

He added that the team will be further enhanced by last week’s appointment of Richard Shuttleworth as chief executive.