Nuclear contracts boost for Redhall

REDHALL Group, the specialist engineering support services group, is to work on two contracts at Sellafield nuclear plant valued at around £200m.

David Jackson, chairman of Wakefield-based Redhall, will announce the project wins at Redhall's annual general meeting today.

Mr Jackson will also tell shareholders that the company has started the current trading year, which started on October 1, in line with management expectations.

He will also prvoide an update on the integration of Jex Engineering Company and Steels Engineering Services, which Redhall bought last year, saying they are “performing strongly”.

Mr Jackson will tell shareholders: “The group continues to make advances in the nuclear sector. In line with our objective to work at tier two level, I am pleased to announce that we have pre-qualified for two projects totalling approximately £200m within the reprocessing and operations programme at Sellafield.

“We are progressing discussions with potential key strategic partners in order to increase the scope and growth of our nuclear business.

“These discussions should strengthen Redhall's presence within the broader European nuclear services market.”

For the year to September 30, Redhall previously revealed dramatic growth by unveiling a 200% rise in profits. Pre-tax profits leapt to £2.39m, up from £772,000 the previous year.

Turnover increased by 80% to £57m from £31.6m last time.

Redhall has three main divisions – nuclear services, engineering services and specialist manufacturing.

In nuclear services it carries out work at the Sellafield nuclear plant and also for the Atomic Weapons Establishment. The engineering services division, boosted by the acquisition of Grimsby-based Jex, manages the installation and maintains production operations in the oil, gas, food and petro-chemical sectors.

The group also manufactures waste storage vessels for the nuclear industry.

Further growth is planned by Redhall through a combination of acquisitions and expansion of the existing operations. The group also has ambitions to move into decommissioning North Sea oil and gas operations.

Mr Jackson is also expected to tell shareholders: “We have received substantial enquiries to assist with the containment of waste across a range of sectors but particularly in the nuclear and waste to energy sectors.

“Jex is the preferred bidder for a contract in the region of £10m for the design, fabrication and installation of a new carbon fibre production unit for Bluestar Fibres, the Chinese owned chemical manufacturer.

“The plant is situated on the Humber Bank and confirms our strategy of broadening the base of the Jex business within the extensive chemicals industry in that area.”

Redhall also announced today that Tony Price has been appointed to the group's board as an executive director.

Mr Price, 53, joined Redhall last November as managing director of nuclear services having previously been the director of decommissioning and major projects for British Nuclear Group.