(Alliance News) - Hargreaves Services PLC shares rose sharply on Monday after reporting improved trading results from its German joint venture.
The Durham, England-based company provides services to the industrial and property sectors. Its shares were up 6.9% to 331.51 pence each in London on Tuesday.
Hargreaves noted that investment in its German joint venture, Hargreaves Raw Material Services GmbH, was "increasingly important" for delivering shareholder value and that it expected its profit contribution to be greater than previous expectations.
Hargreaves also reported an improved cash position, which it attributed to higher cash inflows in recent weeks because of working capital reductions, resulting in a "substantially higher" than expected year end cash balance.
The firm's distribution and services business continues to trade in line with expectations despite delays to the HS2 rail project connecting London to Birmingham, which have hurt its specialist earthworks division.
Speaking on the results, Chair Roger McDowell commented: "I am pleased that our German joint venture has made such good progress in turning around the performance of DK Recycling und Roheisen in addition to delivering strong trading results.
"Whilst the delay in mobilisation at HS2 is both out of our control and frustrating, the value in that contract is only deferred and not lost to the group. The group's cash generation is particularly satisfying and I look forward to reporting further progress at the time of our preliminary results announcement in late July."
By Will Paige; willpaige@alliancenews.com
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Hargreaves Serv (HSP)