Engineering group runs out of cash
Engineering services group Redhall is fighting for its survival after it suspended trading in its shares on the Alternative Investment Market.
Its shares closed last night at 1.5p, valuing the £38m-turnover group at just £5m.
The Wakefield-headquartered group has now revealed tax liabilities have increased the pressure on its short-term cash flows.
Redhall secured £2m of short-term financing from two of its largest shareholders in January and it had again been “in active discussions with major shareholders and creditors to provide additional funding”.
But it has been forced to admit “there is no reasonable prospect that a viable solution for additional funding capacity can be found”.
It has requested that ordinary shares be suspended from trading on the AIM, “pending clarification of the Company’s financial position”.
Earlier this month Redhall revealed that delays in projects relating to its subsidiaries Jordan Manufacturing and Booth Industries meant that its financial performance would not meet expectations.
It faced a reduction in the value of one of Jordan’s contracts for a major nuclear infrastructure due to design changes.
It said at the time that trading performance would be “materially below” previous expectations and full year trading remained uncertain.