REG - Hargreaves Servs PLC - Trading update

Hargreaves ServicesAnnouncement

15/03/2022 07:00

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RNS Number : 7359E  Hargreaves Services PLC  15 March 2022

 

Hargreaves Services plc

("Hargreaves" or the "Group")

 

 Improved trading from German JV

 

HRMS future years' profitability expected to be at least 30% greater than
current market expectations

Hargreaves Services plc (AIM: HSP), a diversified group delivering services to
the industrial and property sectors, announces further improvements to its
expected trading results for the current financial year ending 31 May 2022,
due to the continuing strong performance of its German Joint Venture,
Hargreaves Raw Materials Services GmbH ("HRMS").

 

The Board notes that results within both the HRMS materials trading business
and its subsidiary DK Recycling und Roheisen GmbH ("DK") are exceeding
expectations. Current commodity prices, specifically pig iron and zinc, are
continuing to have a positive benefit on the results of both businesses. The
Board is now confident that HRMS has sufficient visibility for the remainder
of the current financial year to expect its contribution to Hargreaves'
results in the second half to exceed that recorded in the first half.

 

While it is not possible to predict how long these favourable market
conditions will prevail, the Board now expects some beneficial impact to
continue into the first half of the year financial ending 31 May 2023.
Additionally, as a result of operational improvements at DK, future
profitability from HRMS is expected to be at least 30% greater than current
market expectations, even if current levels of commodity pricing are not
sustained.

 

HRMS continues to deploy cash generated to fund working capital required to
support current high levels of activity.

 

The remainder of the Group's businesses continue to trade in line with market
expectations.

 

Commenting on HRMS' improved trading performance, Roger McDowell, the Chairman
of Hargreaves, said: "Whilst current market conditions are contributing to
very strong HRMS results, I am particularly pleased to see the underlying
improvements that the management team has implemented at DK, providing a
reliable platform for sustainable future profitability."

 

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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