Redhall warns on profits amid nuclear contracting problems

31st Jul 2014 16:22

Engineering support services group Redhall warned on profits after problems in nuclear contracting and delays in work from big customers.Redhall, which makes blast-resistant doors and other engineered products for industries ranging from oil & gas to drugs, said it had revised its forecasts for the year to 30 September and now expected to broadly break even before exceptional items at the operating profit level. It said its manufacturing and engineering businesses were doing well and making acceptable profit, but its nuclear contracting operations would make significant losses due to lower volumes.It said it was taking action to put the operations on a sounder footing, but would face exceptional charges of £2.7m. It said banker HSBC Bank was fully supportive."The group continues to have a strong relationship with its key customers and whilst we have experienced delays in work from our major clients, we expect to deliver our recovery plan, albeit over an extended timeframe," it said.Shares fell 5.5p or 20% to 22p at 16:01 in London.PW