Wakefield manufacturer to raise £9.5m through placing

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Wakefield manufacturer, The Redhall Group is to raise £9.5m through a share placing as it seeks to “capitalise on other opportunities available”.

The Wakefield-headquartered business will place some 95 million shares at a price of 10p per share.

LOIM and Redhall have also entered into a debt conversion agreement so that £3.75m of debt will be converted into 37.5 million shares. The company has also secured an agreement in principle to increase its facilities with HSBC from £5.525m to £8m.

Redhall’s chief executive Phil Brierley said: “We are very pleased with progress in the first half of our financial year, particularly in the increase in our order book.

“New build orders in the nuclear sector are coming through faster than anticipated, which is very encouraging for Redhall.

“The placing and the debt conversion announced today will help us to deliver these orders effectively and to capitalise on other opportunities available to the group as it implements its growth strategy.”

Redhall’s interim results for for the six months to 3st March 2017 show that turnover for the six month period stands at £19m, down from £21.4m a year ago. This translates into a reduction in pre-tax losses of £180,00, down from £354,000 a year ago.