Redstone boss insists profits possible


Redstone boss insists profits possible

Alex Scroxton

Redstone executive chairman Stephen Yapp has said the group still has "the resources and the opportunity to return to profitability" after lifting the lid on disappointing six-monthly interims at the end of December.

Troubled comms integrator Redstone made total sales from continuing operations of £49.3m during the six months to the end of September 2009, down over a quarter year-on-year.

The firm also made an operating loss of £6.2m, including a £1.5m goodwill impairment charge.

Bright spots came in the form of a number of key contract wins for Redstone's Converged Solutions Division, growth in Managed Services, and the creation of a new division to manage a major Building Schools for the Future (BSF) contract in Birmingham, which will be overseen by non executive deputy chairman Tim Sherwood.

In a statement issued to the stock market, Yapp tried to stoke investor confidence in Redstone: "Both Peter [Hallett, Redstone CFO] and I, along with Divisional Management, have been actively engaged in talking to our major stakeholders and explaining how the recent refinancing has strengthened the balance sheet of the Group," he said.

He continued: "It has been a pleasure to confirm that the Group now has £26m of working capital facilities provided by the Bank and shareholders, of which £9.4m was undrawn as of 30 September.

"In addition, the Group has the ability to raise capital lease or hire purchase finance in the ordinary course of business to a maximum of £3.0m," added Yapp.

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