Pre-Close Trading Update

RNS Number : 7256U

Hargreaves Services PLC

30 June 2009

 



For immediate release

30 June 2009

HARGREAVES SERVICES PLC 

(the 'Group' or 'Hargreaves')

Pre-Close Period Trading Update for the year ended 31 May 2009

Hargreaves Services plc (AIM: HSP), the UK's leading energy support services provider, today issues the following trading update for the year ended 31 May 2009, prior to the Group entering its close period and the announcement of its preliminary results.

The Group is pleased to announce that it expects to report results that are in line with market expectations. This continues Hargreaves unbroken track record of delivery since its flotation in 2005. Net Debt at 31st May 2009 was slightly lower than market expectations at £69.2m.  

Energy & Commodities Division

The UK operations continue to perform very strongly with profits and volumes ahead of internal expectations. Trading volumes remain low in Europe but the Board is very encouraged by the progress being made in establishing the new coal trading operation in Ghent, Belgium. The Group's renewable fuel trading operations have performed well and in the 12 months to 31st May 2009 have delivered their first profit. Coal4Energy, acquired in January, has now been fully integrated into the Division.

Production Division

The Production Division has performed in line with expectations in the second half. The face change at Maltby was completed in January and production has already increased to the budgeted levels with the new face equipment performing very well. 

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 with some key contracts wins and renewals in the year.

Transport Division

The Transport Division has performed well in challenging conditions. Volumes in the Dry Bulk fleet remain depressed due to the downturn in the construction and aggregate sectors and steps have been taken to improve operating efficiency and geographic reach. We are satisfied that all three units, Dry Bulk, Tankers and Waste are well positioned to benefit from any upturn in volumes when the opportunity arises. 

Outlook

The Board is confident about the prospects for the Group and is actively considering opportunities to deploy its strong operating cash flow to accelerate growth and investment. These opportunities in the short term will focus on coal operations, renewables and further strategic investments at Maltby. 

The Group expects to report its preliminary results on 15 September at which time management will provide a further update on progress.

For further details:

Hargreaves Services Gordon Banham, CEO Iain Cockburn, Finance Director	0191 373 4485
Buchanan Communications Tim Anderson, Catherine Breen	0207 466 5000
Brewin Dolphin Investment Banking Graeme Summers Matt Davis Andy Emmott	0845 213 1000

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