Redhall bursts nuclear order delays with £10m work

REDHALL has won three new nuclear and defence contracts worth £10m in total, bucking the contract delays that have beset the nuclear sector.

The Wakefield group has secured a 3.3m contract at Sellafield and two contracts totalling 6.7m at the Atomic Weapons Establishment at Aldermaston.

Last month Redhall said it had been hit by widely-publicised delays in spending by the Nuclear Decommissioning Authority (NDA). The contracts have raised hopes that spending is coming back on track.

They include a 3.3m order under Redhall's four-year contract with Sellafield to manufacture specialist nuclear storage containers and infrastructure equipment for two new-build projects.

The Aldermaston contracts include a 4.7m design, build and upgrade of control and electrical systems in radiological areas and a 2m three-year cross-site infrastructure framework agreement.

Simon Foster, the group's new chief executive, said: "These contracts have been secured due to our extensive experience, onsite presence and commitment to supporting the energy and defence markets, in particular the UK nuclear sector."

Altium Securities called the new contract wins reassuring, given the recent change in management and said they demonstrate the wider demand for Redhall's offering.

The broker is retaining its forecasts ahead of the group's full-year results on December 3 and said "underlying long-term drivers for Redhall remain strongly positive".

Last month the group announced a boardroom shake-up which saw Mr Foster take over as chief executive and John O'Kane, former finance director at Jarvis, take on the same role at Redhall. David Jackson continues as executive chairman.

At the time it was confident delays to nuclear revenues would be temporary.

The firm said its defence division, created after the 18.6m acquisition of engineer Chieftain group, has continued to grow, boosted by work on projects at the Atomic Weapons Establishment. Redhall recently submitted a bid to build the Box Encapsulation Plant Project Store at Sellafield nuclear power station, in a joint venture with Costain and Sir Robert McAlpine.

The contract for the 200m project to build a storage facility for nuclear waste at Sellafield will be awarded by the end of this year.

Shares in Redhall closed up nearly three per cent last night at 150p.