Hargreaves Services PLC Wolf Minerals Limited (4016D)
October 09 2018 - 3:13AM
UK Regulatory
TIDMHSP
RNS Number : 4016D
Hargreaves Services PLC
09 October 2018
09 October 2018
Hargreaves Services plc
(the "Hargreaves" or the "Group")
Wolf Minerals Limited
The Board of Hargreaves Services plc (AIM: HSP), a diversified
group delivering services to the industrial and property sectors,
notes the announcement made this morning by Wolf Minerals Limited
("Wolf") (AIM: WLFE). The Group supplies contract mining services
to Wolf's tungsten mining operation at Hemerdon, Devon.
The announcement states that in connection with recent
announcements in relation to Wolf's financing arrangements, Wolf
has been working with its key financial stakeholders to develop
longer term funding solutions required to provide it with capital
to progress further production improvements. It states that Wolf's
discussions with its stakeholders are ongoing and it expects to
conclude those discussions this week, following which a further
announcement will be made. However, should Wolf not be able to
satisfactorily conclude its discussions with those stakeholders
within the next two days, it will not be in a position to meet its
short term working capital requirements after that point in
time.
Until Wolf has concluded those discussions, the impact on
Hargreaves' financial position and trading expectations cannot be
fully determined. However, the Board estimates that the Group has a
current net exposure of approximately GBP5m to Wolf comprising
trade debt and WIP balances, some or all of which may prove to be
irrecoverable were Wolf to be unable to continue trading.
Redundancy and other associated costs may also result in a further
non-recurring charge of up to GBP3m against Group profits in the
current financial year. Additionally, if Wolf ceases to trade, this
could reduce the Group's revenue in the balance of the current
financial year by approximately GBP15m and its profit before tax by
a further GBP1m.
Hargreaves is in close contact with Wolf and its advisors and a
further announcement will be made in due course.
For further details:
Hargreaves Services plc
Gordon Banham, Chief Executive Officer
John Samuel, Group Finance Director 0191 373 4485
Buchanan (Financial PR)
Mark Court/Sophie Wills/Henry Wilson 0207 466 5000
N+1 Singer (Nomad and Joint Corporate
Broker)
Sandy Fraser/Rachel Hayes 0207 496 3000
Investec (Joint Corporate Broker) 0207 597 4000
Sara Hale/Helene Comitis
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END
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