20 October 2011 – trading update

The group has confirmed that trading in the second half of the financial year to 30 September has been in line with expectations and that net debt at the year end of £10.2m was also in line with budget.  The group was cash generative during the period and final results are due on 8 December.  Redhall also announces that it has been awarded an initial payment of £0.7m for damages arising from its contract dispute with Vivergo Fuels which the latter terminated in March. This contract dispute has now gone to court but Redhall remains confident that it has a good case.  Elsewhere, the group’s tendering activity in all sectors remains high, particularly in the nuclear sector.  The shares are likely to tread water in the short term but we believe that long term prospects remain sound.  BUY.