Engineering firm Redhall Group announced a halving of half year profits today following last week’s profits warning and the departure of its chief executive.
The Wakefield-based group said turnover fell nine per cent to £51.4m in the six months to March 31 and adjusted pre-tax profits tumbled from £500,000 to £200,000.
Former chief executive Richard Shuttleworth resigned with immediate effect last week and was replaced by group commercial director Phil Brierley.
Chairman David Jackson said: “The new management team will concentrate on profitable execution and increasing margins rather than top line growth in the short term.
“Once we have achieved this we can again look to grow. The board remains convinced that the group’s future prospects are strong.”
Analyst David Buxton at FinnCap said: “Redhall’s interim results are overshadowed by the two recent trading updates and management changes.
“Following the recent profits warning we placed our forecasts under review, seeking greater clarity from interim results and the new management.
“We now introduce lowered 2014 forecasts, with an adjusted pre-tax profit of £1.0m (down 50 per cent from £2.1m).
“New management needs to demonstrate a recovery in profitability, while it will also take time to stabilise and restore the market’s confidence in the shares. As such we believe a Hold rating is appropriate.”
Redhall’s interim finance director Chris Kelly, the former finance director of Town Centre Securities, has been appointed to group finance director.