Hargreaves Services plc
("Hargreaves", "the Group" or "the Company")
Update on Redcar Steelworks Closure and Trading Update ahead of AGM
Hargreaves Services plc (AIM: HSP), a group delivering key projects and services in the infrastructure, energy and property sectors, today provides an update, ahead of its AGM on 5 October 2016, on the Redcar steelworks closure activity and on current trading.
Update on Redcar Steelworks Closure
The Group notes the recent press coverage concerning the Tribunal claim by staff who were formerly employed by Hargreaves at the Redcar steel plant. Management is disappointed by the findings of the Tribunal's oral judgment delivered on 30 September 2016, which could give rise to an additional potential liability of £0.6m relating to the closure in October 2015 of the Redcar operation. We await the Tribunal's fully reasoned written judgment. The circumstances surrounding the demise of SSI, the owner and operator of Redcar steelworks, gave rise to a highly complex and fluid situation. It was against this challenging background that Hargreaves sought to do its very best by its employees, acting in accordance with legal and professional advice. We expect any cost arising from the Tribunal's decision to be treated as an exceptional item in line with all other historic costs associated with the closure of the Redcar operation.
AGM Trading Update
At the AGM, to be held on Wednesday 5 October 2016, Hargreaves Chairman David Morgan will make the following statement: "We are pleased that the increasing interest from coal power stations noted in the Preliminary Results Statement has now been translated into contracts for the sale of the Group's surplus coal stocks. Shipments of these coal stocks, totalling approximately £11m, have already commenced and will continue through the winter in line with expectations and without any impairment to book value.
"Trading across the rest of the Group for the year to date has been in line with expectations. Although there are still risks associated with the achievement of new business targets in the Industrial Services division, encouraging progress in our Property and Energy portfolio allow management to remain confident at this time in achieving its overall performance target for the year which, together with the realisation of legacy coal stocks referred to above, provides a favourable background against which to finalise our deliberations on returning surplus capital to shareholders."
For further details:
Hargreaves Services Gordon Banham, Chief Executive Officer Iain Cockburn, Finance Director |
0191 373 4485 |
Buchanan Mark Court / Anna Michniewicz / Sophie Cowles |
020 7466 5000 |
N+1 Singer (Nomad and Joint Corporate Broker) Sandy Fraser / Nick Owen |
020 7496 3000 |
Investec (Joint Corporate Broker) Sara Hale / Rob Baker |
020 7597 4000 |
