Hargreaves Services PLC Pre-Close Trading Update and Results Notification (9250X)
November 30 2017 - 1:01AM
UK Regulatory
TIDMHSP
RNS Number : 9250X
Hargreaves Services PLC
30 November 2017
For immediate release 30 November 2017
Hargreaves Services plc
("Hargreaves", "the Group" or "the Company")
Pre-Close Trading Update and Notification of Interim Results
Hargreaves Services plc (AIM: HSP), a diversified group
delivering key projects and services to the infrastructure, energy
and property sectors, today provides the following update on
trading ahead of entering its close period before reporting its
interim results for the six months ended 30 November 2017.
The Group has enjoyed stable trading conditions during the
period with underlying Group performance for the six months
expected to be in line with management expectations.
Hargreaves anticipates a strong second half with expected
outperformance in Coal Distribution offsetting any risks around the
timing of specific property transactions. We are pleased to report
that the problems associated with certain legacy civil engineering
contracts in the Earthworks business, reported in the preliminary
results on 8 August 2017, have been largely and satisfactorily
resolved. Further, a substantial claim has been intimated to the
vendors of CA Blackwell and the Group is confident, based on legal
advice, that a number of warranties have been breached.
Our European raw materials trading business, Hargreaves Raw
Materials Services GmbH, continues to trade strongly, and good
progress is being made with the development of the new coal
processing plant announced on 19 October 2017.
We are also pleased to note that cost reduction and
restructuring measures taken in the Logistics business are already
showing benefits resulting in that business trading in line with
expectations. This is encouraging following the disappointing
performance in the final quarter of last year.
Conditions in the heavy plant markets have improved
significantly over the last six months leading to high levels of
enquiries, largely from international buyers, for our surplus
plant. This bodes well for the generation of both cash and profit
from the sale of plant across the remainder of the year.
The Group expects to report its interim results for the six
months ended 30 November on 14 February 2018. A briefing for
analysts will be held at 10.00am on the morning of the results at
the offices of Buchanan, 107 Cheapside, London EC2V 6DN. For more
information on the briefing, please contact Buchanan on 020 7466
5000.
Gordon Banham, Chief Executive Officer of Hargreaves, commented:
"It is very pleasing to see the progress that is being made in the
operating businesses in the UK, Germany and Hong Kong. The focus
remains on returning all of the Company's businesses to consistent
levels of profitability and reducing the volatility of constituent
profit streams. We remain focused on reducing the central overhead
costs and are making excellent progress in that regard. I am also
encouraged by the continuing progress in the development of both
the property portfolio and the Brockwell energy spin-off. Given the
improved conditions in the plant market we have made it a priority
to accelerate the realisation of value and cash from our surplus
assets."
For further details:
Hargreaves Services
Gordon Banham, Chief Executive
Officer
Iain Cockburn, Finance
Director 0191 373 4485
Buchanan
Mark Court / Sophie Wills
/ Henry Wilson 020 7466 5000
N+1 Singer (Nomad and
Joint Broker)
Sandy Fraser / Nick Owen 020 7496 3000
Investec (Joint Broker)
Sara Hale / Robert Baker 020 7597 4000
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCEADFEDEAXFEF
(END) Dow Jones Newswires
November 30, 2017 02:01 ET (07:01 GMT)
Hargreaves Services (LSE:HSP)
Historical Stock Chart
From Apr 2024 to May 2024
Hargreaves Services (LSE:HSP)
Historical Stock Chart
From May 2023 to May 2024