Member Article

Profits rise 15.6% for Durham fuel firm

Durham-based energy and fuel company, Hargreaves Services, has announced record profits of £54m in their preliminary results for 2012.

The company reported a 15.6% rise in profits before tax, and nearly 25% rises in revenue for the year ending in May 2012.

Hargreaves Services has four main divisions that are involved with the sourcing, processing, handling and transporting carbon-based and other bulk minerals.

The firm has an employee base of 2500 people and trade with bases across the world, including Russia, the U.S and South Africa.

Hargreaves has grown organically and through acquisitions made since it was established in 1994, and has a blue-chip client base which includes companies such as British Energy and Eon.

Tim Ross, chairman of Hargreaves Services said: “The Group has had another successful year, with a strong performance resulting in record profits.”

The company’s mining division Maltby Collier suffered from geological problems, and although the chairman said this did not impact Hargreaves’ financial results, the firm is budgeting for an £8m loss next year after mining operations appear risky.

Mr Ross continued: “The developments at Maltby were unexpected and we are closely assessing the implications of those developments. However, the overall progress we have made across all our divisions is encouraging and gives us confidence in further growth in the business going forward.

“I can report that the Group is trading strongly. Based on early trading, setting Maltby aside, and despite a slow start to production at Tower, we are cautiously optimistic that we will meet or even exceed our overall budget for this financial year.”

The company’s dividend “remains very conservative”, according to its statement, at 17.8 pence per share, which will be paid out at the end of December this year.

This was posted in Bdaily's Members' News section by Miranda Dobson .