Strong results for mining group
HARGREAVES Services, the group which runs Monckton coking plant near Barnsley in South Yorkshire, has today announced a strong set of results as it continued to push ahead in a challenging market.
The mining business reported that group revenue in the period increased by £100.7m from £359.8m to £460.5m in its interim results for the six months to the end of November 2013.
Underlying operating profit in the first half increased by £6.2m from £24.7m to £30.9m and underlying pre-tax profit was £28.5m, an increase of 22.3% on the comparative period, driven by the first contribution from the Scottish surface mining operations and the continued strong performance of UK coal operations.
Hargreaves said Monckton’s performance during the first half of the year was broadly in line with plan as volumes were, as previously reported, largely contracted through the end of last calendar year.
The group, which is headquartered in Durham, said looking ahead, Monckton’s domestic volumes, representing approximately half of its output, are largely contracted to the end of 2015. With regards to Monckton’s export volumes, the group is experiencing some pricing pressure as contracts were renegotiated at the turn of the calendar year. Given the uncertain outlook, a number of customers are opting to minimise offtake and to seek quarterly contracts.
Hargreaves closed its Maltby site last year. It said the closure programme continues in line with plan. The process to sell the underground equipment is ongoing and, as previously reported in December, the group provided Hatfield Colliery Partnership with a short-term option to acquire certain items of underground plant and equipment. Hargreaves said there have been a number of enquiries to date and some realisations have already been achieved and further amounts are expected to be achieved by the end of the financial year. The group remains confident of achieving full value for the assets.
Chairman Tim Ross said: “Following a transitional year for the group, we are pleased to announce a strong set of results for the six months ended November 30 2013. We continue to work hard in a dynamic and challenging coal market and the board remains confident of achieving its expectations for the full year.”
