New orders boost Redhall
The Wakefield-based firm, which serves the nuclear and defence industries, said the total order book for its manufacturing businesses now stands at £21m compared with £17m at the half year.
Redhall said its manufacturing businesses, Booth Industries and Jordan Manufacturing, have been successful in securing significant new orders since the announcement of the group’s interim results on June 8. These include a further £2.0m of rail infrastructure work and £4.6m of defence related work.
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Hide AdJordan Manufacturing has secured over £2.5m of further awards in the nuclear decommissioning market.
The group said the Government’s decision to proceed with Hinkley Point C is potentially very significant. Booth Industries and Jordan Manufacturing have already submitted, or are in the process of submitting, a number of tenders for work on this substantial project. Redhall said the timing of work for these tenders varies, but it is anticipated that awards to the successful bidders will be as early as mid-2017.
The group's chief executive Phil Brierley said: "Government support for Hinkley Point C is also an indication that its nuclear energy strategy may lead to the development of further nuclear power stations providing work to manufacturing businesses over a significant future period."
He said that Redhall’s specialist services division also performed well in the financial year to September 30, enabling the group to invest in the growth of its manufacturing businesses. Redhall Jex recently won a £1.2m contract to install a rubber micronisation plant for a joint venture partnership in Spain and the group said the division is supporting its blue chip customer base on capital and maintenance projects.
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Hide AdAt the interim results in June the group said BAE had re-tendered the work packages that fell within the scope of Redhall Marine. Redhall Marine has since been informed that it will not be awarded the new contract as it was unable to submit a compliant tender as it considered that the new terms represented a material increase in the level of risk.
The interim contract that Redhall Marine has been working under since December 2015 is expected to end in January 2017.
The firm said it expects the remaining businesses in specialist services, Redhall Networks and Redhall Jex, will continue to perform well in the current financial year.
The board said it is encouraged by the level of opportunities and the growth in order book in the group’s chosen markets within manufacturing. As a result it expects that the overall profitability for the year to September 30 will remain in line with market expectations.
The group’s results for the year to September 30 are expected to be announced in early December.