Redhall celebrates contract wins
SPECIALIST engineering support services group Redhall announced today it has won contracts worth more than £10m.
In a trading update this morning, the Wakefield-based group said it has secured deals with AWE, British Energy, Chevron and Conoco Phillips.
Redhall, which is still on the hunt for a new chief executive, said the contracts will increase the visibility of earnings for the second half of the financial year.
The group said: “Cashflow remains as anticipated and the current facility provided by HSBC is considered by the board to be adequate for working capital requirements. The group is forecast to be cash generative in the second half of the financial year.
“This week we have announced the merger of our nuclear and defence businesses to form Redhall Nuclear Limited. The launch of the amalgamated business has been extremely well received by our client base and should further enhance the profile and prospects of the group within this sector.”
Last month, the group claimed it had been left around £14m down after the termination of a contract for work at what is set to become a major bioethanol plant in the region.
Vivergo Fuels ended its contract with Redhall at the site at Saltend near Hull, claiming that Redhall Engineering Solutions (RESL), the subsidiary behind the mechanical and piping work, had fallen behind.
Redhall said today: “The board believes that expectations following the announcement on March 14 will be met although there remains uncertainty around the quantum of any exceptional item in relation to the Vivergo Fuels contract.
“We continue to pursue our case against Vivergo Fuels in order that we can proceed to a resolution as soon as possible.“
Redhall also announced the appointment of Ian Butcher as deputy chairman.
