Redhall buoyed by Vivergo, Chevron, Sellafield wins
8 Apr 2010
London – UK engineering services provider Redhall Group plc has posted a number of contract wins, including a project involving the fabrication and mechanical installation of pipework for a new bio-ethanol plant at BP, Salt End for Vivergo Fuels Ltd.
Redhall, which was the preferred bidder for the biofuels project, has confirmed that the contract is now signed and encompasses an enlarged scope with a total value of £30 million, with most of the work to be completed in 2010.
Redhall has also also won a contract involving tankage and engineering work for Chevron over the next five years worth a total of £15 million. In the civil nuclear field, meanwhile, the group has been successful with a bid to commission the new boiler park at Sellafield where we have won a contract valued at £3.2 million.
“We are encouraged by our key contract win with Vivergo Fuels which reinforces our stated strategy of focusing on our core markets and competencies,” said executive chairman David Jackson. “This will be one of the largest bio-ethanol plants in the UK and strengthens our position in the energy market.”
The group announced the contracts in a trading update for the six months to 31 March 2010, which describe its business performance as in line with expectations and ahead of the same period for last year, helped by growth within the energy and defence sectors.
However, Redhall added: “The process area remains challenging with reduced volumes compared to the first half of 2009. We continue to review our cost base and are reallocating resources to more productive areas for the short term.”
Net cash resources at the half year were £7.4 million – compared to £6.3 million, 30 Sept 2009 – and Redhall’s’s order book now stands at £130 million – up from £115m six months ago.
