At the time of the Group’s Annual General Meeting, held on 6 March 2019, the Board’s expectations for the current year ending 30 September 2019 were based on subsidiaries Jordan Manufacturing and Booth Industries winning a number of expected new contracts, which would drive a strong trading performance in the second half of the year.
Unfortunately, however, the Group has been affected by delays in the award of a number of these projects and a reduction, due to design changes, in the value of Jordan Manufacturing’s contract for a major nuclear infrastructure programme. As a result, the Board now anticipates that the full year trading performance for the Group will be materially below its previous expectations. The full year result remains dependent upon securing a number of key prospects and therefore remains uncertain.
The near-term pipeline for the Group is strong, in particular for Booth Industries where the business has a number of prospects across the infrastructure, defence and oil & gas sectors, and for Redhall Networks where there are increasing opportunities to support the roll-out of the 5G network infrastructure programme. The award of a major engineering contract in the defence sector for Booth Industries was a major highlight of the first half of the current year, placing the Group in a strong position for the award of the follow-on manufacturing contract, due later in the year.
Overall, market conditions remain robust in most of the Group’s core markets and its pipeline of opportunities remains strong. The Board anticipates that this pipeline will deliver steady growth into 2020.
The Group’s results for the half year ended 31 March 2019 are expected to be announced in June 2019.