8 April – trading update and contract wins
One of our favourite stocks, Redhall Group, has revealed that trading in the six months to 31 March has been in line with expectations. Although the overall market remains competitive, the group’s technical capability and continually enhanced reputation is enabling it to win key strategic projects. The largest contract win involves the provision of fabrication and mechanical installation of pipe work for a new bio-ethanol plant at BP, Salt End for Vivergo Fuels Limited. This is worth £30m to Redhall, although other contracts have been signed with Chevron and for work at Sellafield. With net cash of £7.4m at the end of March and an order book worth £130m, the shares remain a BUY.