News: Hargreaves post latest results

Hargreaves Services plc, the UK's leading energy support services provider and owner and operator of Maltby Colliery in Rotherham, has announced its preliminary results for the year ended May 31 2010.

Despite disappointing performance at Maltby, the group posted results with profits before tax increasing by £5.7m to £34.3m and revenue declining due to the impact of falling commodity prices by £43.3m, from £503.1m to £459.8m.

Hargreaves has completed the change to a new face at Maltby but the performance has been a disappointment despite the investment. The group are hopeful that production consistency will now improve.

Tim Ross, chairman at Hargreaves Services stated that the group is to focus on initiatives to improve the consistency of production at Maltby, reduce costs and maximise proceeds.

Tim Ross said: "I am pleased to report that the Group has completed another successful year and delivered a further set of record results. The Group is well placed to drive further profit growth and cash generation and the Board continues to view the long-term future with confidence.

"With the exception of Maltby Colliery, businesses across the Group performed in line with, or ahead of, management expectations.

"The Group remains well financed following the new banking facilities signed in September 2009 and the business is operating comfortably within its covenant levels. Having completed two years of heavy investment at Maltby, the focus will now, as planned, return to increasing cash generation."

He went on to acknowledge the support from customers, employees and union representatives as they jointly face up to the challenge of improving Maltby's production consistency, reducing operating expenses and maximising proceeds to secure a successful future for the mine.

Hargreaves Services website

Images: hargreavesservices.co.uk