Turnaround gathers pace at engineering group

SPECIALIST manufacturing group Redhall is seeing returns from its “dramatic” turnaround plans. Interim results for the six months to 31 March 2016 showed that the company was on track to come back from losses of £12.2m last year, due to a major restructure.

Revenue for the six month period from continuing operations amounted to £21.4m, compared to £22.7m in the same period last year.

Losses before tax and interest narrowed by a large amount. For the six month period, Redhall made a loss of £354,000 from £1.35m in the same six months last year.

During the first six months, the company invested heavily in manufacturing capability at Jordan Manufacturing and product range at Booth Industries. The bill came in at £400,000.

Having recently secured a £6.9m defence contract and £6.2m of infrastructure projects, the company says it is making good progress with its plans. Its divisions are also looking to get involved in tendering for projects at the Nuclear New Build project at Hinkley Point C.

Martyn Everett, chairman of Redhall commented: “The level of new orders received for our Manufacturing businesses for defence, decommissioning and rail related infrastructure projects is very encouraging as is the pipeline of new opportunities. We anticipate an overall improvement in profitability in H2, driven by our Manufacturing businesses, with a continued strong level of profitability for our Specialist Services businesses.”

Last year the company also sold its £30m division Redhall Engineering to Cape for £6m, reducing the business’ exposure to contracting.