Nuclear work helps Redhall grow
REDHALL Group, the specialist engineering support services group being built by former Peterhouse chief David Jackson, showed its dramatic growth today by unveiling a 200% rise in profits.
The Wakefield-based group saw pre-tax profits leap 209% to £2.39m in the year to September 30, up from £772,000 a year ago. Turnover increased by 80 per cent to £57m from £31.6m last time.
And Mr Jackson promised further growth in the year ahead through a combination of acquisitions and expansion of the existing operations. He said the company has a forward order book of £64m. It has ambitions to move into decommissioning North Sea oil and gas operations.
Mr Jackson, the chairman and chief executive of Redhall, said: “'This has been another milestone year in the development of Redhall with our
second year of significant growth in turnover and profit since management changes in 2005. The pace of growth is a reflection of our focused strategy and
success in investing in long-term relationships in sectors where support and development of critical assets is a client priority.
“Our order book remains healthy with 60% of 2007/08 turnover in hand at the start of the year. We look forward to the coming year with confidence as we
continue to expand our Group businesses both organically and by acquisition within our chosen fields.”
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 earlier this year, 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.
Redhall doubled adjusted earnings per share to 12.29p and also increased its total dividend by 125% to 2.25p.
At the year end it had net debt of £1.3m, net assets of £18m and gearing of just 7.2% which Mr Jackson said put it in a good position to move for “the right” acquisitions.
“We have deliberately avoided taking on high levels of debt and as a result are in a strong position to take advantage of any opportunity that may occur in an economic climate that has changed markedly during the second half of 2007,” he said.
The group today announced the appointment of the former finance director of Go-Ahead Group, Ian Butcher, as a non-executive director.
“We continue to actively seek complementary acquisitions and our principal targets are in electrical engineering and nuclear design. We are also interested
in expanding our geographical coverage of the oil and gas markets. Once we have achieved this balance we will look for an expansion of our activities into North
Sea decommissioning,” added Mr Jackson.
