Interim Resultsfor the six months ended 31 March 2018

Wayne Pearson, Chief Executive OfficerChris Kelly, Group Finance Director

June 2018

Agenda

• Highlights

• Strategic update

• Operational overview

• Financial review

• Outlook

• Questions

1

2

• Adjusted operating loss £1.9 million (H1 2017: profit of £0.2 million); £0.8 million before deduction of central costs of £1.1 million (H1 2017: profit of £0.2 million)

• Operating exceptional costs of £0.5 million – closure and restructuring (H1 2017: nil)

• Group turnover £14.7 million (H1 2017: £19.0 million – includes 3 months of Marine contract)

• Net debt of £4.5 million (30 Sept 2017: net cash £0.1 million)

Financials

• Nuclear New build, Decommissioning & Defence

• Infrastructure

• High profile builds

• Oil & Gas

Opportunities

• Order book £37 million (December 2017: £32 million)

• £18 million framework for Jordan Manufacturing announced in December

• Major contract awards for Hinkley Point C announced in March 2018 Orderbook

• Business transformation strategy

• Developing value stream structure

• Lean journey started

• Significant improvement requiredOperations

16%

Highlights

STRATEGIC UPDATE

3

4

Re-structuring 2014 - 2017

• Weak operational performance

• Weak supply chain

• Sub-scale group

• High central costs

• Leadership gaps

• Order taker culture

• New product & markets

• Increased security demand

• Increase fire regulations

• Operational leverage

• Acquisition in manufacturing space

• VAVE

• Advanced materials

• A smaller business focused on manufacturing

• Fund raising & debt conversion

• Restructured balance sheet to create distributable profits

• Reduced pension deficit

• Exit RESL & Site Services

Initial assessment 2017 Transformation 2017-2019

• Drive operational Improvements

• Develop leadership teams

• Drive opportunity pipeline in strategic markets

• Strategic outsourcing

• Lean implementation

• Design for manufacture

Growth 2019 - on

Strategic Update

5

Nuclear & Defence

Infrastructure

High Profile Build

Oil & Gas

6 Nuclear New Build Power Stations £140 bn over 20 YearsNuclear Decommissioning - Sellafield, Dounreay, Magnox, Winfrith £161 bn over 100 yrsDefence – Nuclear fleet, Atomic Weapons, Military Vehicles

Domestic & International Underground and Overground Rail SystemsRoad System TunnelsData Centres

Opera Houses, CERNTheatres, ArchitecturalExhibition Centres, Hospitals

Recovery past $80 / barrel driving spend FPSO buildsRepair & Maintenance

New regulations to drive higher margin opportunities

New regulations to drive higher margin opportunities

Strategic Opportunities

6

Nuclear

Nuclear defence

- AWE capital projects

- Other opportunities

Nuclear decommissioning

- Sellafield/Magnox/DSRL

- New facilities

Nuclear new build

- Hinkley Point C

- Five possible future sites

Strategic Update

7

Planned UK New Builds £140 bn over next 20 Years

Product opportunities being progressed at Hinkley Point C:• Sample glovebox• Further marine works• Core catcher fabrication• Ductwork support• Pipe supports• Vessel fabrication• Condensate polishing plant fabrication• Shield, blast, fire & security doors

Hinkley Point C

Wylfa

£275 million per station for 20 yearsfor Redhall Group

WylfaHorizon Nuclear

2,700 MW

Hinkley Point CEDF Energy/CGN

3,200 MW

Sizewell CEDF Energy/CGN

3,200 MW

Bradwell BCGN/EDF Energy

1,150 MW

OldburyHorizon Nuclear

2,700 MW

MoorsideNuGen

2,800 MW

Nuclear New Build Opportunities

8

Dounreay:ILW storeReactor DecommissioningShafts & Silo

Sellafield:Major Projects:• BEP• SRP- Major Frameworks- Spares framework- Additional Pond storage racks- Large volume 3m3 box fabrication

Winfrith:Dragon DecommissioningSGHWR Decommissioning

Magnox Sites:- Support to retrievaloperations across various sites- Manufacture of steelwork for 6m3 RCB (reinforced concrete boxes)

£161 bn over 100 years front end loaded£470 million for Redhall

£20 million per year for Redhall for

next 10 years

NDA Estate Opportunities

9

• Support to SC Group Jackal military vehicle programme (manufacture of ‘hampers’)

• High integrity doors for AWE

• Epure high integrity doors for MOD

Nuclear Research:

• Manufacturing support to programmes at:

• ITER (first large scale fusion project)

• ESS (European Spallation Source, Sweden)

• ISIS

• CERN

Defence:• Support to Dreadnought (replacement for Royal Navy Trident Missile Vanguard submarine) including

extensive modifications to nuclear facilities at Plymouth, Barrow, Faslane• Submarine decommissioning programme at Rosyth including nuclear core interim storage at Capenhurst

Defence and Nuclear Research

OPERATIONAL REVIEW

10

11

£'m

Total Manufacturing

Dec-15 15 11

Jun-16 20 17

Dec-16 27 23

Jun-17 32 26

Dec-17 32 27

Jun-18 37 32

Orders on a like for like basis - excluding Marine

Operational Review

Continue to grow and deliver order book• Order book progression – growth coming from high integrity manufacturing

Excludes £18 million Cavendish Nuclear framework

• Continued delivery of nuclear defence (UK and France), Crossrail and other infrastructure projects

• Invested in sales and marketing to develop the opportunity pipeline

• Focused on significant operational efficiency improvements both within engineering and manufacturing

• Lower profitability in H1 than anticipated due to ongoing contract delays and redesign

12

Operational Review

• Hinkley Point C contract commenced which was a major highlight of H1

• Hinkley scope increased materially

• Significant opportunities for further contracts on Hinkley – and long-term follow on nuclear new build sites

• Confirmed framework of £18 million with Cavendish Nuclear

• Substantial pipeline of quality tenders including high value framework bids in decommissioning

• The tendered pipeline subject to ongoing delays in awards

• Sales and marketing focus on ‘runners and repeaters’ to support large projects

13

Ph

oto

cre

dit

: ED

F En

ergy

Operational Review

• Strong performance in H1 underpinned by strong long term relationships with major customers

• Business successfully delivered £4.7 million capital project for a major customer

• Major rubber micronisation plant project in installation phase

• Grimsby location closed and consolidated into Trafford Park, Manchester, making the operation more efficient and reducing overheads

• Visibility over client capital spend programmes for 2018 and into 2019

14

Operational Review

• A strong first quarter

• Slowdown of work in the second quarter which has continued into the second half

• Medium term outlook for continued high volumes of new and upgrade works to cellular infrastructure

• Long-term outlook encouraging as operators install more technologies, split shared sites, upgrade and replace their existing sites

15

Operational Review

FINANCIAL REVIEW

16

Income Statement

• Underlying revenue for H1 2018 down 8% on a like for like basis due to later than expected Jordan Manufacturing contract awards

• Operating loss pre central costs driven by significantly lower than anticipated volumes, additional overhead investment

• Exceptional charge on continuing operations for closure of Grimsby site and minor restructuring

• Central costs include HR, Finance and IT

• Finance charge reduced following placing and debt conversion in July 2017

* Before exceptional items, amortisation of intangible assets and IFRS2 charge.

H1 2018£’000

H1 2017£’000

Revenue* 14,744 18,964

Adjusted operating (loss)/profit before central costs (806) 1,228

Central costs* (1,119) (1,045)

Adjusted operating (loss) /profit* (1,925) 183

Net financial charge (209) (439)

Adjusted loss before tax* (2,134) (256)

Exceptional items (521) -

Amortisation of intangible assets (135) (153)

IFRS2 credit/(charge) 59 (210)

Loss before tax (2,731) (619)

Tax on loss on ordinary activities 294 (93)

Loss for period – continuing operations (2,437) (712)

Profit/(loss) on discontinued activities 0 (72)

Group loss (2,437) (784)

Income Statement

17

18

• Exceptional items relate to:

• Closure of Jex Grimsby location and transfer of activity to Manchester (£0.3m)

• Minor restructuring (£0.2m)

Continuing operations2018£’000

2017£’000

Restructuring and other costs 521 -

Exceptional Items

19

Tax

• Tax credit on loss for the period £294,000

• Total deferred tax asset increased to £1.3 million (2017: £1.0 million)

Pension

• Liability reduced to £0.4 million by deficit recovery payments

• Year end position will reflect CMI 2017 mortality update and change from RPI to CPI for future increases

• April 2018 triennial valuation ongoing with current deficit recovery payment of £305k per annum

• Scheme closed to future accrual

Tax and Pensions

20

• Cash absorbed by operations in the period

• Continued investment in capital expenditure and product and process development

• Impacted by lower volumes, later contract starts and overhead investment

• Significant working capital in major construction contracts

• Improvement expected as work completed

H1 2018£’000

H1 2017£’000

Cash generated (absorbed by)/from operations

(3,846) 87

Interest paid (244) (379)

Net cash from operating activities (4,090) (292)

Net cash from investing activities (499) (310)

Net cash from financing activities 2,219 (69)

Net cash flow (2,370) (671)

Opening net funds 2,370 1,021

Closing net funds - 350

Borrowings (4,165) (9,269)

Net borrowings (4,165) (8,919)

Finance leases (289) (355)

Total borrowings (4,454) (9,274)

Cash Flow Statement

21

(521)

(1,925)

216 (740)

(625)

(251)(244)

(499)

(4,454)135

(5,000)

(4,000)

(3,000)

(2,000)

(1,000)

0

1,000

Sep-17 Exceptionals Operating loss Other items Debtors/otherdebtors

WIP/Stocks Creditors Interest paid Net Capex Mar-18

£ T

ho

usa

nd

s

Debt Bridge

22

• Total bank facility at 31 March 2018

HSBC £m

Overdraft 2.0RCF 3.5Accordion 2.5

8.0

LOIM term loan 1.7

Total facilities 9.7

• Facilities secured until July 2021

• Covenant amendments for FY2018 agreed with HSBC to reflect H1 losses

• Margins – HSBC 3.5% and LOIM 4.25% above LIBOR

Total BorrowingsCurrent£’000

>1 Year£’000

Total

As at 31/03/18:

Cash/(Overdraft) (1,450) - (1,450)

Loans - (2,715) (2,715)

Finance leases (72) (217) (289)

(1,522) (2,932) (4,454)

As at 31/03/17: 258 (9,562) (9,304)

Borrowings and Facilities

23

• Investment in working capital since year end expected to reverse in H2

• Increase in borrowings to fund working capital and losses

• Deferred tax movement is due to expected future use of losses

31st March 2018£’000

31st March 2017£’000

Full Year 2017£’000

Non-current assets 5,135 5,704 5,057

Goodwill 18,305 18,305 18,305

Non-cash current assets 15,600 12,953 14,404

Net assets held for sale 141 - 141

Non-cash current liabilities (8,159) (9,979) (8,645)

Deferred tax 1,315 607 1,021

Pension scheme (380) (1,815) (450)

Borrowings net of cash balance (4,165) (8,919) 458

Finance leases (289) (355) (323)

Net assets 27,503 16,501 29,968

Balance Sheet

OUTLOOK

24

25

• H1 Performance constrained by operational issues and contract slippage

• Significant operational improvement required

• Group’s performance remains sensitive to customer and project delays, much of which are outside our

control

• The Board anticipates that the full year performance will be in line with expectations

• Strong trading expected in H2 and in particular Q4

• Increased volumes and margins as we start to see some of the benefits of our operational excellence

• We are confident that the momentum in our order book and the improvements already underway within

our business transformation strategy will deliver profitable growth in the Group and create long term value

for shareholders

Outlook

APPENDICES

26

Redhall Group Today

A high integrity manufacturing and services business

Businesses all serve complex and hazardous

environments

Operating in nuclear, oil & gas, telecoms and specialist

infrastructure and food

Strong blue-chip client base

New CEO leading business transformation strategy

and growth

New FD, Simon Comer, joins in July 2018

27

Wayne Pearson, CEO

Chris Kelly, Group FD

28

A Selection of Our Current Blue Chip Client Base

Strong brands with highly accredited products:

• Design, manufacture, project management and installation of:

• high integrity blast, fire, radiation shielding, acoustic and security doors

• fire and blast products including panels, decks and tunnels

• Manufacture of bespoke high integrity products including gloveboxes, nuclear civil and defence equipment

• Located in close proximity to Hinkley Point C

29

Redhall Group Businesses

• Provides cellular rigging installations to the mobile telecommunications market throughout England and Scotland

• Provides design, manufacture, installation and relocation of process equipment to the food and pharmaceutical markets

30

Redhall Group Businesses

Major shareholders

31

Shareholders Shares 8th June 2018 %

1. Lombard Odier Asset Management (LOIM) 92,587,179 27.81

2. Downing LLP 75,900,000 22.80

3. Ruffer LLP 43,550,000 13.08

4. Canaccord Genuity Group Inc. 27.500,000 8.26

5. Others 93,363,505 28.05

Total 332,900,684 100.00

Note: Lombard Odier Asset Management have options over 18.5 million shares. They can exercise options to increase their holding to 29.9%. Options issued to directors and senior employees amount to 25.64 million options.

Major Shareholders