Redhall attributes share price jump to Hinkley Point approval

15th Sep 2016 10:23

(ShareCast News) - AIM-listed manufacturing and specialist services company Redhall Group noted the jump in its share price on Thursday, saying it was likely to be related to the government's approval of the Hinkley Point C nuclear power station."The board of Redhall considers that its businesses Booth Industries and Jordan Manufacturing, both of which have been responding to tenders for high integrity manufacturing for Hinkley Point C, are well placed to win work should the project progress," it said.The company said it will make a further announcement as appropriate in due course.At 1030 BST, Redhall shares were up 23% to 10.70p.The UK government has given the green light to construction of the £18bn Point C nuclear power project to France's EDF, but added several conditions.With France's EDF having agreed to pay for two-thirds of the project and China General Nuclear Power Group paying the other third as part of proposed supply of further UK power stations, the government said it would take a "special share" in all future nuclear new build projects to maintain a measure of control."Following a comprehensive review of the Hinkley Point C project, and a revised agreement with EDF, the Government has decided to proceed with the first new nuclear power station for a generation," a statement from the Department for Business, Energy & Industrial Strategy said on Thursday.The agreement adds a condition to enable the government will be able to prevent the sale of EDF's controlling stake prior to the completion of construction and intervene in the sale of EDF's stake once Hinkley is operational.