City Briefs: Redhall; Bonmarché

REDHALL Group, the specialist engineering support services business, said this morning that after experiencing lower volumes in its Nuclear Contracting businesses, it will lead to significant losses for these divisions in the current year.

However, the Wakefield-based group said that following an extensive and thorough review by the new executive team, it has revised its forecasts for the year ending in September and now expects to broadly break even before exceptional items at the operating profit level.

Redhall said its manufacturing and engineering businesses continue to operate well and produce acceptable levels of profitability, in line with the group’s strategy of rebalancing it towards manufacturing.

Redhall said: “We believe that we have now recognised the full extent of the issues in Nuclear Contracting and action is being taken to put the businesses on a sounder footing.  In addition we have provided for further exceptional contract losses and restructuring costs across the group bringing our exceptional charges for the year to £2.7m. Our bankers, HSBC Bank, remain fully supportive of the Group.

“The group continues to have a strong relationship with its key customers and whilst we have experienced delays in work from our major clients we expect to deliver our recovery plan albeit over an extended timeframe.”

:::

RETAILER Bonmarché has reported strong growth.

In a trading update for the 13 week period ended June 28 2014, headline like-for-like sales increased by 13.5%. Total sales growth for the period was 16.9%. 
 
Beth Butterwick, chief executive officer of the Yorkshire group, said: “We have made a good start to the new financial year and the spring/summer ranges have sold well – we are pleased at the response of customers to our improved offering. Our new store/concession opening programme has also begun well and is on track. The good weather enjoyed during the Q1 period has had a beneficial impact on sales, although at this early stage we are not altering our expectations for the current financial year.”