1 February 2012 – AGM statement

At the AGM to be held later today, the group will confirm that trading in the first quarter of the financial year has been in line with expectations.  An adjudication on the long-running dispute with Vivergo is likely this month and this should remove much of the uncertainty surrounding the company.  If the adjudicator finds in favour of Redhall a significant bounce in the share price is likely – the company is only capitalised at £22m and yet it will be seeking to reclaim in excess of £14m from Vivergo.  The group has also announced that it has signed an agreement with French company Baumert, a supplier to the French nuclear industry, which will open up a potential stream of significant new business.  With the group’s restructuring into three divisons now complete, we believe that the shares now look attractive.  Clearly, buying ahead of the adjudication decision is risky, but we feel that the shares are a SPECULATIVE BUY.