Cash crisis puts heat on blast-proof door maker
ENGINEERING business Redhall
Group, which makes blast-proof doors for military bases, has found itself imploding.
The AIM-listed firm was suspended from trading as it admitted it may not have enough cash to carry on.
Redhall is under pressure to pay tax bills, but has been unable to find additional funding.
A profit warning earlier this month, caused by a reduction in the value of a major nuclear contract, meant the firm was already expecting full-year performance to disappoint.
Shareholders refused to stump up the cash, and the board said it is now investigating all alternative options to minimise the losses to employees and investors.
In a statement, Redhall added: ‘The board notes that the outcome of this process and its impact on the company’s stakeholders remains uncertain.’
If Redhall were to go bust, all of its defence contracts would be thrown into doubt.
The company was also hoping to take on work relating to the building of the UK’s super-fast mobile internet 5G networks.
It employs around 500 people across its UK businesses, which include Booth Industries, Jordan Manufacturing, Redhall Networks and Redhall Jex.
The company’s history dates back to the 1800s, and it has played a part in engineering the UK’s nuclear submarine base in Coulport and building the first offshore escape tunnel for oil rig workers to flee in the event of a disaster.
Shares in Redhall were suspended from trading yesterday, but have tumbled 82pc over the last year.
While politics in Westminster reached new levels of chaos, its namesake company Westminster
Group celebrated a year of smooth trading. The security firm said revenues were up 24pc to £6.7m, and losses before tax narrowed from £5.7m to £1.4m.
It operates through two divisions – managed services, which guards big City headquarters and provides airport security; and technology, which creates military defence systems and fire alarm equipment.
Chief executive Peter Fowler said: ‘We expect 2019 revenues to be significantly ahead of 2018 even without any further new major contract awards, which of course would materially improve the results.’ Shares in the company shot up 9pc, or 0.6p, to 7.25p.
But struggling outsourcer Kier slipped another 6.6pc, or 20p, to 281.6p, as it seemed several investors were selling up.
Prudential revealed it had bought the surplus, raising its stake from 7.9pc to 10.6pc.
The FTSE 100 managed to hold its ground in the face of Theresa May’s resignation as Prime Minister, climbing 0.7pc or 46.69 points to 7277.73 points.
Miners helped pull the index up, as the dollar slipped against the pound. Because mining companies sell most of their products in the US currency, any fall means their sales are more impressive when converted into pounds.
Russian steel firm Evraz, which counts Chelsea football club owner Roman Abramovich among its major shareholders, climbed 3.4pc or 20p to 606.6p.
Copper giant Antofagasta edged up 2.9pc, or 22.4p, to 802p. All eyes were on events company
Tarsus, which runs exhibitions such as the Dubai Airshow, as private equity firm Charterhouse Capital made a £561m bid.
Tarsus’s directors are recommending that shareholders approve the 425p per share bid, which was 36.2pc higher than the 312p closing price on Thursday.
Neville Buch, the firm’s chairman and largest shareholder, stands to pocket £38.6m if he sells his 7.4pc stake. Tarsus jumped 38.1pc, or 119p, to 431p.