2 February 2011 – AGM statement
We are disappointed to have to report that the AGM statement from Redhall Group was not as bullish as we would have liked. Poor weather conditions have had a negative impact on a number of major contracts and, although the full year result is expected to be in line with expectations, profits will be skewed to the second half. In addition, Simon Foster has announced that he is to leave as CEO at the end of March for family reasons with chairman David Jackson taking over the executive responsibilities until a replacement is found. On a more positive note, the group has re-organised its borrowings which will provide it with flexibility to make larger acquisitions. We are disappointed that the company has once again failed to perform although we continue to believe that the long term outlook is promising. We rate the shares as a LONG TERM BUY.