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17 Dec 2009 07:00
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For immediate release |
17Β DecemberΒ 2009 |
HARGREAVES SERVICES PLCΒ
(the "Group"Β or "Hargreaves")
Pre-Close Period Trading Update for theΒ six months ended 30 November 2009
In Line with Expectations
Hargreaves Services plc (AIM: HSP), the UK's leading energy support services provider,Β today issues the following trading update for theΒ six monthsΒ ended 30 NovemberΒ 2009Β prior to the Group entering its close periodΒ ahead ofΒ the announcement of itsΒ InterimΒ Results.
The Group is pleased to announce that it expects to report results that are in line with managementΒ expectations.Β
Energy & Commodities Division
TheΒ UKΒ coal operations continue to perform very stronglyΒ with profits and volumes ahead of internalΒ 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 operationsΒ inΒ Belgium andΒ Poland. As a result, performance for the division is expected to be ahead of expectations in the first halfΒ and the full year.
Production Division
Monckton has traded in line with expectations and theΒ Group has been pleased to see coke marketsΒ recoveringΒ strongly.Β Prices areΒ risingΒ and with keyΒ newΒ contracts secured for the second half, MoncktonΒ isΒ on track to slightly exceed previous expectationsΒ for the full year.Β Production and stocks are fully sold for the financial year.
Inconsistent production performance at MaltbyΒ has adversely impacted the Division's first half. This has beenΒ caused by teething problems with the new T11 production equipment,Β which have now been resolved,Β and through some geological anomalies that have also now been passed.Β Despite the tragic fatality announced last week, production hasΒ been improvingΒ over the last few weeks and the Group expects aΒ goodΒ second half performance from Maltby.Β We have dropped our full yearΒ targetΒ byΒ approximatelyΒ 55,000 tonnesΒ to 1,075,000 tonnesΒ compared to the 1,090,000 tonnes achieved in the prior year.Β
AsΒ announcedΒ separately todayΒ we are pleased to report that constructionΒ is almost completeΒ at the first Rocpower site and commissioning of the enginesΒ isΒ in process.
The TowerΒ CollieryΒ projectΒ is progressingΒ very wellΒ and weΒ continue toΒ 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.Β
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.Β
Outlook
The BoardΒ isΒ confident of achievingΒ managementΒ expectations for the full yearΒ andΒ remains encouraged byΒ the prospects for the Group into the medium term.Β The GroupΒ hasΒ significant organicΒ developmentΒ opportunityΒ whichΒ in theΒ short term willΒ focus onΒ theΒ newΒ coal operations inΒ BelgiumΒ &Β Poland,Β the Rocpower initiativeΒ andΒ the continuingΒ strategic investmentΒ at Maltby.Β The Board continuesΒ toΒ monitor, evaluate andΒ review acquisition opportunities.
The Group expects to reportΒ itsΒ InterimΒ Results onΒ 16 February 2010Β 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 Β |
0191 373 4485 |
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Buchanan Communications Tim Anderson Catherine Breen Stasa FiliplicΒ |
0207 466 5000 |
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Brewin Dolphin Investment Banking Graeme Summers Matt Davis Andy Emmott |
0845 213 1000 |
ENDΒ
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