14th Dec 2015 09:04
LONDON (Alliance News) - Solid fuels and bulk logistics provider Hargreaves Services PLC on Monday said trading in all three of its divisions has taken a hit from the further deterioration seen in coal and steel markets.
Hargreaves said it will be restructuring its mining plans in order to reduce coal production in Scotland to around 500,000 tonnes a year, whilst remaining committed to completing all current restoration schemes. It also will invest in new processing facilities in order to cut its exposure to loss-making thermal coal.
Coal burn levels in the UK are at "unprecedented" low levels for the current time of year, with no indications that new sales demand from coal-fired power station customers will materialise before the end of the winter. The domestic heating market also is taking a hit from the unseasonably mild winter weather in the UK, leading Hargreaves to cut its profit expectations for the business.
Meanwhile, the group downgraded its profit expectations for its industrial services arm due to lower spend by its thermal coal and steel customers, while it also cut its profit forecast for its transport arm due to a fall in general waste market flows.
Hargreaves Services shares were down 6.2% to 265.00 pence on Monday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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