For immediate release |
30 November 2017 |
Hargreaves Services plc
("Hargreaves", "the Group" or "the Company")
Pre-Close Trading Update and Notification of Interim Results
Hargreaves Services plc (AIM: HSP), a diversified group delivering key projects and services to the infrastructure, energy and property sectors, today provides the following update on trading ahead of entering its close period before reporting its interim results for the six months ended 30 November 2017.
The Group has enjoyed stable trading conditions during the period with underlying Group performance for the six months expected to be in line with management expectations.
Hargreaves anticipates a strong second half with expected outperformance in Coal Distribution offsetting any risks around the timing of specific property transactions. We are pleased to report that the problems associated with certain legacy civil engineering contracts in the Earthworks business, reported in the preliminary results on 8 August 2017, have been largely and satisfactorily resolved. Further, a substantial claim has been intimated to the vendors of CA Blackwell and the Group is confident, based on legal advice, that a number of warranties have been breached.
Our European raw materials trading business, Hargreaves Raw Materials Services GmbH, continues to trade strongly, and good progress is being made with the development of the new coal processing plant announced on 19 October 2017.
We are also pleased to note that cost reduction and restructuring measures taken in the Logistics business are already showing benefits resulting in that business trading in line with expectations. This is encouraging following the disappointing performance in the final quarter of last year.
Conditions in the heavy plant markets have improved significantly over the last six months leading to high levels of enquiries, largely from international buyers, for our surplus plant. This bodes well for the generation of both cash and profit from the sale of plant across the remainder of the year.
The Group expects to report its interim results for the six months ended 30 November on 14 February 2018. A briefing for analysts will be held at 10.00am on the morning of the results at the offices of Buchanan, 107 Cheapside, London EC2V 6DN. For more information on the briefing, please contact Buchanan on 020 7466 5000.
Gordon Banham, Chief Executive Officer of Hargreaves, commented: "It is very pleasing to see the progress that is being made in the operating businesses in the UK, Germany and Hong Kong. The focus remains on returning all of the Company's businesses to consistent levels of profitability and reducing the volatility of constituent profit streams. We remain focused on reducing the central overhead costs and are making excellent progress in that regard. I am also encouraged by the continuing progress in the development of both the property portfolio and the Brockwell energy spin-off. Given the improved conditions in the plant market we have made it a priority to accelerate the realisation of value and cash from our surplus assets."
For further details:
Hargreaves Services Gordon Banham, Chief Executive Officer Iain Cockburn, Finance Director |
0191 373 4485 |
Buchanan Mark Court / Sophie Wills / Henry Wilson |
020 7466 5000 |
N+1 Singer (Nomad and Joint Broker) Sandy Fraser / Nick Owen |
020 7496 3000 |
Investec (Joint Broker) Sara Hale / Robert Baker |
020 7597 4000 |
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