Shares in specialist engineer Redhall were hit by a double whammy of profit warning and the departure of the group's chief operating officer Tony Price, who was brought in for his nuclear expertise.
Redhall has placed great emphasis on its involvement in nuclear decommissioning but continued delays in spending by the Nuclear Decommissioning Authority have impacted on the volume of work Redhall has received, compounding some weakness in its chemicals division. This means full-year results for the 12 months to end September 2009 are likely to come in 'marginally below' broker estimates of adjusted pre-tax profits of £6.8m and EPS of 16.5p.
Longer term the nuclear business will pick up, and Redhall is well positioned to benefit. And its oil and gas businesses and its defence division, which works at the Atomic Weapons Establishment at Aldermaston, continue to perform strongly.
When: 9 January 2009
Price: 209p
