Redhall Group confirms it is pulling Jex Engineering out of Grimsby
CLOSURE CONFIRMED: Grimsby's Jex Engineering, below, is to be consolidated into the Manchester site, main image.
By Grimsby Telegraph | Posted: 6 Dec 2017
REDHALL Group has confirmed the closure of Jex Engineering’s Grimsby base, despite an improved performance in the business and a strong forward demand being highlighted.
In its strategic report, released alongside preliminary annual results which revealed both a £1.4 million operating profit and overall loss, it confirmed the ‘home town’ operations are being consolidated into the Manchester base.
In the statement, chief executive Phil Brierley, who is stepping down having completed a strategic turnaround, said: “Redhall Jex performed well in the second half of the 2017 year, helped by the delivery of a £2.8 million order for a key client. This project has extended into 2018 and its scope has increased to over £4.7 million. Coupled with the fact that all our major customers have capital spend programmes for 2018, this means that Redhall Jex is likely to perform above 2017 levels.”
Turning to the South Humberside Industrial Estate base, a huge reduction on the scale it once operated in town before being bought out from founder Tony Jex in 2007, Mr Brierley said: “Since the year end we made the decision to consolidate the activities of Redhall Jex in Grimsby into our Trafford Park facility in Manchester. This will make the overall operation more efficient and better controlled as well as reducing overheads. Most of the customer relationships are already held in Manchester.”
In his outlook, which will see him step down from the helm of the £38.9 million turnover business in March, he added: “The major food customers of Redhall Jex have committed spend programmes for this year and although this will need to be converted into orders we are confident that the performance of the second half of 2017 will continue through into 2018.”
Redhall Jex, which trades as Jex Engineering – a firm established back in 1974 – employed more than 200 people when the deal completed a decade ago. It had grown substantially over more than 30 years, working with local and national businesses, from small processors to the likes of Cadbury, Kellogg’s and McCain.
Kellogg’s is a near neighbour in Manchester.
Martyn Everett, chairman of Redhall, added: “The board continues to see considerable opportunities for its manufacturing and services business. This is reflected in a significant volume of tenders, received by Booth Industries and Jordan Manufacturing, in our key nuclear defence, decommissioning and new build markets. We also see strong demand for our food process manufacturing and installation and mobile networks businesses.”
Wayne Pearson, Redhall’s chief operating officer, will take over as chief executive.
The results brought little change in a near annual low share price of 7.25p in the first three hours of trading.
Read the full trading report: Redhall Group preliminary annual results.