Redhall's finance function review leads to £500k provision

A FINANCE FUNCTION review has revealed £900,000 in costs and provisions at engineering support business Redhall Group, with its CFO departing.

The group, which has undertaken a number of restructures and reviews in recent months, has extended an exceptional provision by a further £500,000 following a “detailed analysis” of assets in the balance sheet of its nuclear business. The analysis was part of the group’s ongoing restructuring of its finance operations in a bid to improve systems and controls. The original provision, identified on 26 March, was more than £300,000.

An exceptional provision of approximately £370,000 will be required to cover restructuring costs associated with the finance function across the group and the nuclear division, with auditors KPMG called in to verify the work.

Group finance director Chris Lewis-Jones has stood down with immediate effect and Chris Kelly has been appointed interim FD. Kelly was previously FD of listed business Town Centre Securities, and prior to that was a partner at EY.

Delays in picking up new contracts will see a “deterioration” of the group’s performance, it said in its stock exchange statement, but the board still expects to report growth in revenues and underlying profitability in the 12 months to September 2014.

Redhall chief executive Richard Shuttleworth said: “The group continues to make progress in its trading. I am satisfied that we have now resolved the issues relating to legacy contracts and remain confident of the future.”