REG - Hargreaves Servs PLC - Trading Update and Notice of Preliminary Results

Hargreaves ServicesAnnouncement

09/06/2022 07:00

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RNS Number : 2094O  Hargreaves Services PLC  09 June 2022

 

Hargreaves Services plc

("Hargreaves" or the "Group")

 

Pre-Close Trading Update and Notification of Preliminary Results

 

Hargreaves Services plc (AIM: HSP), a diversified group delivering services to
the industrial and property sectors, provides the following update on trading
ahead of reporting its preliminary results for the year ended 31 May 2022.

 

The Board expects to report results ahead of market expectations, due to the
continued strong performance of the Group's Joint Venture in Germany ("HRMS").
As noted in the statement released on 3 May 2022, commodity prices, including
zinc and pig iron, have maintained their high level, which has led to an
expectation that HRMS' contribution to the Hargreaves results for the year
ended 31 May 2022 will now be £3.5m after tax greater than prior consensus
estimates.

 

The Board anticipates reporting strong results in each of its business
segments. Revenue will be lower than the prior year due to the cessation of
its coal activities, Profit before Tax ("PBT") is expected to be higher. This
improvement on the prior year PBT is anticipated due to increased
contributions from the Services and HRMS businesses.

 

At the end of the financial year, the Group had no bank debt and held cash of
£14.0m (31 May 2021: £28.3m). The reduction in cash is due to the provision
of an additional short term loan of £15m to HRMS to assist with their trading
capacity. The Board has decided to continue to provide this additional funding
to HRMS whilst current favourable market conditions prevail. The only non-bank
debt held by the Group, excluding its joint ventures, relates to leasing debt
related to specific fixed assets. The total leasing debt at the year-end was
approximately £18.1m (31 May 2021: £11.8m). The increase is a result of the
investment in the plant required for the HS2 contract within Services.

 

Notification of Preliminary Results

 

The Board expects to report its preliminary results for the Financial Year on
Wednesday 27 July 2022. Details of the analyst meeting to accompany the
results will be provided in due course.

 

For further details:

 

 Hargreaves Services                                                                   www.hsgplc.co.uk (http://www.hsgplc.co.uk)

 Gordon Banham, Chief Executive Officer                                                Tel: 0191 373 4485

 John Samuel, Group Finance Director

 Walbrook PR (Financial PR & IR)                        Tel: 020 7933 8780 or hargreavesservices@walbrookpr.com

 Paul McManus / Lianne Applegarth / Louis Ashe-Jepson   Mob: 07980 541 893 / 07584 391 303 / 07747 515 393

 Singer Capital Markets (Nomad and Joint Corporate Broker)                             Tel: 020 7496 3000

 Sandy Fraser / Justin McKeegan / Rachel Hayes

 Investec (Joint Corporate Broker)                                                     Tel: 020 7597 5970

 Sara Hale / David Anderson / Shalin Bhamra

 

About Hargreaves Services plc (www.hsgplc.co.uk (http://www.hsgplc.co.uk) )

Hargreaves Services plc is a diversified group delivering services to the
industrial and property sectors, supporting key industries within the UK and
South East Asia. The Company's three business segments are Services,
Hargreaves Land and an investment in a German joint venture, Hargreaves Raw
Materials Services GmbH ("HRMS"). Services provides critical support to many
core industries including Energy, Environmental, UK Infrastructure and certain
manufacturing industries through the provision of materials handling,
mechanical and electrical contracting services, logistics and major
earthworks. Hargreaves Land is focused on the sustainable development of
brownfield sites for both residential and commercial purposes. HRMS trades in
specialist commodity markets and owns DK Recycling, a specialist recycler of
steel waste material. Hargreaves is headquartered in County Durham and has
operational centres across the UK, as well as in Hong Kong and a joint venture
in Duisburg, Germany.

 

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