REG - Hargreaves Servs PLC - Trading Update and Notification of Interim Results

Hargreaves ServicesAnnouncement

08/12/2021 07:00

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RNS Number : 8895U  Hargreaves Services PLC  08 December 2021

 

 

Hargreaves Services plc

("Hargreaves" or the "Group")

 

Trading Update and Notification of Interim 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 interim results for the six months ended 30 November
2021.

 

The Board anticipates reporting strong interim results as all of its business
segments are trading in line with its expectations.

 

Whilst, as expected, Revenue will be lower than that which was reported for
the six months ended 30 November 2020, due to the disposal of coal trading
activities in December 2020, Profit before Tax ("PBT") will be higher. This
improvement in PBT compared to the previous period is reflected across each of
the three business units.

 

In particular, as previously indicated, the Group's German joint venture,
Hargreaves Raw Materials Services GmbH ("HRMS"), has benefited from forward
trading positions in the first half of the financial year. Those positions
mean that the results of HRMS for the first half of this financial year are
expected to be broadly similar to those reported for the second half of last
financial year. The Board has also previously noted that the favourable market
conditions, characterised by strong commodity prices which have prevailed
throughout most of this calendar year, might not endure. Looking forward,
these market conditions are uncertain and as a result the management of HRMS
is currently adopting a cautious approach to trading following the expiry of
its forward positions. The impact on the likely trading results of HRMS for
the year as a whole should become clearer by the end of January 2022 but the
Board expects that they will be substantially weighted to the first half.

 

Net debt, including debt associated with leased assets, at 30 November 2021
was £3.0m, compared with £20.8m at 30 November 2020. Much of this reduction
is due to the strategic decision to dispose of all material coal stock in
December 2020. Excluding the impact of leasing debt, at 30 November 2021 the
Group held cash balances of £8.5m compared with a net bank debt of £8.0m
twelve months ago. Cash balances have reduced from £28.3m at 31 May 2021,
primarily due to an additional short term loan of £15m that the Group has
provided to HRMS, to assist that business to take advantage of the current
strong market conditions. This loan will be repaid in the second half of the
financial year.

 

The Board remains confident of delivering full year results in line with
market expectations.

 

Notification of Interim Results

 

The Board expects to report its interim results for the six months ended 30
November 2021 on Wednesday 26 January 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      Mob: 07980 541 893 / 07584 391 303

 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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