Redhall Group – 7.25p

6 December 2017 – final results

Revenue from continuing operations in the year ended 30 September 2017 were £38.9m (2016: £43.8m).  Adjusted operating profit before exceptional items was £1.4m (2016: £0.9m).  Adjusted diluted earnings per share for the continuing business amounted to 0.20p (2016: nil).  Following a placing and debt conversion in July and capital reduction in September, the balance sheet is much stronger.  At the year end net cash was £0.1m (2016: net debt of £8.2m).  Net assets at 30 September 2017 were £30.0m (2016: £15.5m) reflecting the net proceeds of the placing and the debt conversion of £12.6m as well as a reduction in the pension deficit to £0.5m (2016: £3.8m).  The company appears to have come through a tough period and although challenges remain we believe the shares are a BUY at this level.

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