Redhall says goodbye to troubles

Redhall Group, the specialist engineering support services firm, said that after a testing year the worst was behind it.

The Yorkshire-based company has been hit by a number of contract issues, including an expensive legal battle with Vivergo over a biofuels plant.

Underlying revenue for the year ended 30th September was down 5.6% to £119.5m was 5.6%, while pre-tax profits plunged 50.3% to £1.9m.

Diluted earnings per share stood were down 49% to 4.8p.

The firm posted exceptional items in the year of £5.9m, the majority of which related to costs on the Vivergo legal dispute of £2.5m and provisions on legacy contracts of £2.6m.

The company does not anticipate that any further provisions will be needed in future for these legacy contracts.

Chairman David Jackson said the prospects for the next 12 months looked encouraging, with strength in the oil and gas market and opportunities afforded by the Crossrail project in London where the firm is a specified supplier.

"The opportunities for our manufacturing business in particular look outstanding over the next three years," he added.

MM