month=06
year=2009
30 June 2009
HARGREAVES
SERVICES PLC
(the “Group” or
“Hargreaves”)
Pre-Close Period Trading
Update for the year ended 31 May 2009
Hargreaves
Services plc (AIM: HSP), the UK’s leading energy support services provider, today issues the following trading update for the year ended
31 May 2009, prior to the Group entering its close period and the announcement
of its preliminary results.
The
Group is pleased to announce that it expects to report results that are in line
with market expectations. This continues Hargreaves unbroken track record of
delivery since its flotation in 2005. Net Debt at 31st May 2009 was
slightly lower than market expectations at £69.2m.
Energy &
Commodities Division
The
UK
operations continue to perform very strongly with profits and volumes ahead of
internal expectations. Trading volumes remain low in Europe but the Board is
very encouraged by the progress being made in establishing the new coal trading
operation in Ghent, Belgium. The Group’s renewable fuel
trading operations have performed well and in the 12 months to 31st
May 2009 have delivered their first profit. Coal4Energy, acquired in January,
has now been fully integrated into the Division.
Production Division
The
Production Division has performed in line with expectations in the second half.
The face change at Maltby was completed in January and production has already increased
to the budgeted levels with the new face equipment performing very well.
Industrial Services
Division
Industrial
Services has traded in line with expectations and the Board is pleased with the
steady growth and development of the business with some key contracts wins and
renewals in the year.
Transport Division
The
Transport Division has performed well in challenging conditions. Volumes in the
Dry Bulk fleet remain depressed due to the downturn in the construction and
aggregate sectors and steps have been taken to improve operating efficiency and
geographic reach. We are satisfied that all three units, Dry Bulk, Tankers and
Waste are well positioned to benefit from any upturn in volumes when the
opportunity arises.
Outlook
The
Board is confident about the prospects for the Group and is actively
considering opportunities to deploy its strong operating cash flow to accelerate
growth and investment. These opportunities in the short term will focus on coal
operations, renewables and further strategic investments at Maltby.
The
Group expects to report its preliminary results on 15 September at which time
management will provide a further update on progress.
For further details:
|
Hargreaves Services
Gordon Banham, CEO
Iain Cockburn, Finance Director
|
0191 373 4485
|
|
Buchanan
Communications
Tim
Anderson, Catherine Breen
|
0207 466 5000
|
|
Brewin Dolphin
Investment Banking
Graeme
Summers
Matt
Davis
Andy
Emmott
|
0845 213 1000
|
END