Member Article

Profits down at Durham’s Hargreaves amidst challenging coal conditions

Durham-based Hargreaves Services plc, a supplier of solid fuel and bulk material logistics, has revealed continuing underlying pre-tax profits of £40.3m for the year to the end of May, a 26.9% drop on last year’s figures.

Continuing revenue fell by 23.8% to £662.2m and continuing underlying operating profits were down 28.1% at £42.8m.

Challenging market conditions, namely the turmoil surrounding the coal industry, has made life difficult for Hargreaves although the business remains buoyant.

The group has introduced a ‘Simplification Programme’ and said it had delivered a strong performance in very challenging markets.

Chairman Tim Ross said: “The last two years have presented the coal industry with extremely challenging market conditions. The Board has worked hard to ensure controllable risks are managed and to minimise the impact of risks beyond our control.

“We were clearly right to initiate the Simplification Programme last year. With a significant restructuring exercise largely behind us, we can concentrate on our strategic options to deliver future shareholder value.

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