Member Article

Restructuring at Hargreaves Services aims to de-risk European business

A major European restructuring undertaking at Durham-based mining firm, Hargreaves Services plc, aims to cap exposure of the Group to hefty debts.

The firm now has net debt of £95.6 million and said Coke markets remained risky, particularly for its Monckton site in South Yorkshire, thanks to a depressed steel market.

In a trading update the bulk material specialist and mine owners said their core business had experienced some delays in key contract awards, although remained positive about trading in the second half of the financial year.

Hargreaves have recently secured a contract to provide maintenance services to Castle Peak Power station in Hong Kong - a move described as an “exciting first development” for the Group in the Far East.

The firm said its UK Bulk Coal division continued to perform well thanks to demand from UK power stations and the UK Speciality Coal operations continued to benefit from the administration of UK Coal.

Hargreaves recently sold its Hatfield Colliery site to an employee benefit trust.

This was posted in Bdaily's Members' News section by Tom Keighley .