News: Hargreaves report rise in profits

Hargreaves Services plc, the UK's leading energy support services provider and owner and operator of Maltby Colliery in Rotherham, has announced their latest financial results showing that underlying profit before tax for the year increased 18.1% from £34.3m to £40.5m.

The preliminary results for the year ended 31 May 2011 also showed that revenues increased by £92.5m, from £459.8m to £552.3m and that the growth European operations was a major contributor to the growth in profitability.

At Maltby, total saleable production at Maltby increased by 460k tonnes from 1,057k tonnes to 1,517k tonnes. This increase was largely accounted for by an increase of 414k tonnes in the amount of tiny coal particles (coal fines) recovered.

Hargreaves introduced new working practices during the year and production consistency improved. Total production increased from 827k tonnes to 873k tonnes. A fifth shift was also introduced in February employing 80 extra staff.

About 60% of Maltby's total output is supplied under a long-term secure contract with Drax Power Station, Europe's largest coal-fired power plant. Much of the remaining production is supplied exclusively to Hargreaves' Monckton Coke Works near Barnsley. External coal sales from Maltby generated £53.1m of revenue compared to £38.9m in the previous year.

The colliery produces more than one million tonnes of coal per year and employs more than 500 people. Production at the colliery is currently estimated to continue to 2017.

The report gave an outlook on the future for coal that indicated that although it is likely that the coal consumption by UK power stations will decline, Hargreaves will maintain current level of activity well into the next decade, if not beyond. For the sale of speciality coals, Hargreaves reports a mixed outlook across the market.

Hargreaves Services website

Images: hargreavesservices.co.uk