REDHALL GROUP lost £12.2m as it restructured the company in a year of “dramatic change”.
Last December it announced plans to focus on “higher margin manufacturing activities” with particular emphasis on the nuclear and oil and gas markets.
Six months later that resulted in the sale of its £30m-turnover engineering division Redhall Engineering Solutions to Cape for £6m, which reduced the group’s exposure to contracting. It also announced the closure of its site-based nuclear contracting businesses based at Sellafield and Aldermaston.
In September it raised £5.0m through a share placing to fund the second phase of its turnaround plan.
Martyn Everett, chairman of Redhall, said: “The group is now a manufacturing and specialist services business with a clear strategy to leverage our relationships with customers in the nuclear and infrastructure sectors.
“With a focus on the nuclear defence, decommissioning and infrastructure sectors our key manufacturing businesses, Booth Industries and Jordan Manufacturing, have the capability of generating high margins with anticipated improvements in volumes.
Net debt at the Wakefield-based group has been reduced to £5.5m from £16.0m, while the group says it now has a much simplified structure and cost base with no divisional management and its finance, HR and IT functions all managed at group level.
Revenues at its continuing operations were down 22% to £44.7m, with an operating loss of £0.7m, which was in line with management expectations.
However restructuring costs and losses from discontinued operations weighed heavily, contributing to a full-year loss of £12.2m.
“After a difficult few years, the business is now right sized, leaner and well set to capitalise on future prospects in the infrastructure and nuclear sectors,” added Mr Everett.
