27th Jan 2021 12:05
Hargreaves Services PLC - Durham, England-based diversified group delivering services to the industrial and property sectors - For the six months ended November 30, pretax profit falls by 78% to GBP1.1 million from GBP5.2 million the year before, on revenue that is down 26% year-on-year at GBP92.0 million from GBP124.7 million.
Revenue drop is attributed to the phasing of works on the delayed HS2 project within the Specialist Earthworks division, and a reduction in coal volumes. There was also a decline from the Industrial Services business, with lower activity in Asia because of the pandemic, and the termination of some lower margin contracts in the UK.
Reinstates interim dividend of 2.7 pence per share, from none the prior year.
"The group has traded resiliently through the period and continues to do so although the delays to HS2 have been frustrating and have impacted the headline results adversely. The German joint venture continues to deliver profits in a challenging economic environment," said Chair Roger McDowell.
"The board expects to report results for the full financial year in line with expectations," McDowell added.
Hargreaves Services will publish its annual results on July 28.
Current stock price: 256.55 pence
Year-to-date change: up 0.2%
By Dayo Laniyan; [email protected]
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