Member Article

Hargeaves announces pretax profits of £55.1 million

Durham-based Hargreaves plc, supplier of solid fuel and bulk materials logistics, has announced pretax profits of £55.1 million, an increase of 6%.

The company also experienced further growth as continuing revenue grew 3.1% to £869.2 million.

Moreover, it was announced that share price increased by 24.4% to 25.5 pence and continuing underlying diluted EPS increased by 7.3% to 124.8 pence.

Hargeaves reported strong UK trading volumes and successful expansion of production activities coupled with a positive end to the year for surface mining with excellent production run rates, after earlier delays and exceptional weather conditions,as key annual highlights.

A group review and simplification strategy is now underway whilst the group continues to prepare for its future.

In the annual review it was pointed out that the Maltby closure is reportedly progressing in line with as planned whilst the disposal of Imperial Tankers for a cash consideration of £26.9 million was also announced.

Finally, the company reported strong operating cash flows as net debt reduced to £68.8 million at year end.

The Company’s Annual General Meeting will be held on 5 November 2014 at 11.00am at Prior’s Hall, Durham Cathedral, The College, Durham DH1 3EH.

Chairman, Tim Ross, said: “Over the years Hargreaves has developed to become the most successful and profitable coal operator in the UK and has established a unique range of skills and services.

“The diversification of the business to encompass trading, production, industrial services and logistics has provided a resilient base for the Group since it was listed in 2005.

“As always, our staff remain key to the business and once again I would like to thank them for their loyalty and hard work.

“I am pleased to note that we have achieved our stated target of creating or safeguarding at least 500 jobs in our surface mining operations in Scotland.

“Whilst shareholder value remains a primary focus for us, our employees will always be a key stakeholder group.

“We respect the loyalty and commitment of our staff and will ensure that we take appropriate consideration of their interests as we progress through the review.”

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