Tuesday, April 10, 2012

News: Re-financing for Hargreaves Services


Hargreaves Services plc, the UK's leading energy support services provider and owner and operator of Maltby Colliery in Rotherham, has re-financed its core UK banking facilities.

In a statment to the stock exchange, Hargreaves said that the group had taken the opportunity to increase its core UK facilities from £115m to £175m, comprising of a £125m revolving credit facility and a £50m invoice finance facility.

The arrangement was concluded with a five bank group comprising RBS, HSBC, Lloyds, Santander and Barclays and is committed to October 2015.

The statement said added that: "The decision to secure new facilities early will result in an exceptional charge in the current financial year to write off unamortised arrangement fees totalling £0.4m but will provide certainty, lock in slightly improved pricing and provide the Group with increased debt capacity to support its growth aspirations."

In the interim results for the six months ended November 30 2011, the Durham-based group stated that revenues were up 27.1% to £322.8m compared to the same period the previous year but pre-tax profits dropped over the same period by 16.1% to £13.6m.

Maltby occupies a site of 500 acres and employs over 500 staff and contractors. It is the last coking coal mine left in the UK and produces both high quality coking coal and power station coal.

Poor coal yields from a thin coal section at Maltby is likely to impact full year production and coal production from a new coal panel has been disappointing due to geology.

In response, the group committed an additional £2m to facilitate production of an additional 50 metres of a new, thicker face, that should come into production after October 2012.

Hargreaves website

Images: hargreavesservices.co.uk


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