6 June 2014 – trading update
Yet another disappointing trading update from Redhall has led to the immediate resignation of the CEO. Delays to the timing of existing contracts together with a more realistic view of new business wins means that the company is only likely to produce similar results in the current year to the year that ended last September. In theory, with earnings per share likely to emerge at around 4p, it can be argued that the shares are cheap. But the company has disappointed for years and so it is unlikely that it will enjoy even a market rating for a considerable time. And, given its track record, investors are likely to be concerned that even more profit warnings are possible. There are more attractive investments elsewhere – SELL.