17th Dec 2009 07:00
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For immediate release |
17 December 2009 |
HARGREAVES SERVICES PLC
(the "Group" or "Hargreaves")
Pre-Close Period Trading Update for the six months ended 30 November 2009
In Line with Expectations
Hargreaves Services plc (AIM: HSP), the UK's leading energy support services provider, today issues the following trading update for the six months ended 30 November 2009 prior to the Group entering its close period ahead of the announcement of its Interim Results.
The Group is pleased to announce that it expects to report results that are in line with management expectations.
Energy & Commodities Division
The UK coal operations continue to perform very strongly with profits and volumes ahead of internal expectations. Trading volumes in Europe are increasing steadily and the Board continues to be encouraged by the progress being made at the new coal trading operations in Belgium and Poland. As a result, performance for the division is expected to be ahead of expectations in the first half and the full year.
Production Division
Monckton has traded in line with expectations and the Group has been pleased to see coke markets recovering strongly. Prices are rising and with key new contracts secured for the second half, Monckton is on track to slightly exceed previous expectations for the full year. Production and stocks are fully sold for the financial year.
Inconsistent production performance at Maltby has adversely impacted the Division's first half. This has been caused by teething problems with the new T11 production equipment, which have now been resolved, and through some geological anomalies that have also now been passed. Despite the tragic fatality announced last week, production has been improving over the last few weeks and the Group expects a good second half performance from Maltby. We have dropped our full year target by approximately 55,000 tonnes to 1,075,000 tonnes compared to the 1,090,000 tonnes achieved in the prior year.
As announced separately today we are pleased to report that construction is almost complete at the first Rocpower site and commissioning of the engines is in process.
The Tower Colliery project is progressing very well and we continue to expect that planning will be submitted on schedule in the first quarter of 2010.
Industrial Services Division
Industrial Services has traded in line with expectations and the Board is pleased with the steady growth and development of the business.
Transport Division
The Transport Division's overall performance has been slightly ahead of internal expectations. Bulk tankers and Waste operations have traded ahead, whilst the Dry Bulk fleet is slightly behind budget. Despite the continuing low volumes in the construction and aggregate sectors the Dry Bulk operations continue to trade profitably. We are confident that all three units, Dry Bulk, Tankers and Waste are well positioned to benefit from any upturn in volumes when the opportunity arises.
Outlook
The Board is confident of achieving management expectations for the full year and remains encouraged by the prospects for the Group into the medium term. The Group has significant organic development opportunity which in the short term will focus on the new coal operations in Belgium & Poland, the Rocpower initiative and the continuing strategic investment at Maltby. The Board continues to monitor, evaluate and review acquisition opportunities.
The Group expects to report its Interim Results on 16 February 2010 at which time management will provide a further update on progress.
For further details:
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Hargreaves Services Gordon Banham, CEO Iain Cockburn, Finance Director
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0191 373 4485 |
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Buchanan Communications Tim Anderson Catherine Breen Stasa Filiplic |
0207 466 5000 |
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Brewin Dolphin Investment Banking Graeme Summers Matt Davis Andy Emmott |
0845 213 1000 |
END
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