News: Hargreaves cautiously optimistic on Maltby performance

Hargreaves Services plc, the UK's leading energy support services provider and owner and operator of Maltby Colliery in Rotherham, has announced that the group has performed broadly in line with management expectations and is well placed to deliver a strong second half performance.

In a Pre-Close Period Trading Update for the six months ended 30 November 2011, the Durham-based group announced that the new working practices at Maltby are operating successfully and have delivered the expected increase in machine availability time.

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.

However, the coal production from the new coal panel has been disappointing due to geology and Hargreaves said that it will be working with management and unions to attempt to recover some of this shortfall in the second half of the year.

The group did add that good progress is being made in developing the next coal panel in an area of the mine with a proven 25% thicker coal seam. The group are confident that this will benefit performance significantly from the end of the first quarter of the next financial year.

They also added that the rest of the group is well set for a strong second half performance and will provide a good opportunity to mitigate any negative performance from Maltby.

Preliminary results for the year ended 31 May 2011 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.

Hargreaves Services website

Images: hargreavesservices.co.uk