Redhall close to completing its turnaround

The Wakefield-based firm​ has experienced unforeseen delays on some of its nuclear and infrastructure projects which has led to work being deferred into next year. The most significant of these relates to its work on Hinkley Point C.

Redhall​ said its​ strategic transformation into a focused​,​ high integrity ​m​anufacturing and ​s​ervices group, working in complex, secure and hazardous environments, gained momentum in 2017.

A growing proportion of the ​g​roup’s​ ​order book is now manufactured product, principally for the nuclear sector.

R​edhall​​ said that ​Jordan Manufacturing’s success in being awarded preferred bid status on the £8​m marine works at Hinkley Point C illustrates the ​g​roup’s strategic progress.

In July ​it raised £9.5​m of​ ​new equity through an oversubscribed placing and additionally £3.75​m​ ​of debt was converted to equity.

The order book stands at £32​m, up 19​ ​per cent compared with £27​m in December 2016.

Revenue in the year​ to September ​30 from continuing operations was £39​m​​, down from £4​4​​m the previous year.

Adjusted operating profit before exceptional items was £1.4​m, up from £900,000 in 2016.

The ​group said that despite the results being​ ​below ​its​ original expectation​s​, ​it was pleased with the progress achieved in the year.

The loss for the year was £1.4​m, down from a loss of £1.7m the previous year.

With the completion of the turnaround, ​chief executive ​Phil Brierley has decided​ ​to step down ​in March. He will be succeeded by Wayne Pearson, currently​ ​the ​g​roup’s ​c​hief ​operating ​o​fficer, who ​has a background in manufacturing.

To ensure a smooth handover​, Mr Brierley will remain with the ​g​roup in an advisory role until the end of​ ​2018.

M​r Brierley said: "We feel the turnaoround is largely done. Over the last three years, we've seen the sale of the engineering division​, we've sold assets and raised money in the city.

"That's behind us now and we are getting productivity up. We are getting into a good growth position."

Talking about his decision to step down, Mr Brierley said: "Wayne has more experience delivering manufacturing. It's been a gradual process and Wayne has really improved the business. it feels the right time for me to step down."

Analyst John Cummins at WH Ireland said: "Redhall has come a long way in recent years and ​these results​ mark the completion of​ ​the numerous turnaround initiatives undertaken across the ​g​roup.

​"​Booth and Jordan​ ​are both seeing a significant level of demand for their services across each of the​ ​three high margin nuclear segments and whilst timing of contracts is likely to remain​ ​an inherent risk, we would expect these businesses to secure their fair share of work​ ​in these growing markets.

​"​Whilst acknowledging the risks, we believe the shares​ ​remain fundamentally undervalued given the outlook for the ​g​roup.​"