Mining group’s profits fall

Mining group Hargreaves Services has seen a drop in half year revenues but “strong prospects” in Germany are expected to drive performance in the second half, the company said.

The group posted continuing operating profit of £0.1m for the six months to the end of November – down from £4.9m last time.

Continuing revenues for the group fell by 2.2% to £170.9m.

Underlying operating profit fell by 48.8% to £2.1m and underlying pre-tax profits were down 71.9% at £0.9m.

Net debt rose from £30.8m to £36.9m, which Hargreaves expects to fall materially during the second half, with the final outcome dependent on the timing of material property disposals.
            
The group said that overall performance in the first half was in line with management expectations and that its property and energy portfolio development was progressing well with planning permission granted for an energy-from-waste plant near Grangemouth and the planning decision on its Blindwells development expected in March.

Chairman David Morgan said: “It is pleasing to see how much progress we have made towards the three strategic goals we set ourselves a year ago. First, earnings from the continuing distribution and services operations are well set to deliver operating profit within the target range that we set.

“Second, good progress is being made in creating and then delivering the targeted £35m-£50m uplift in value from our property and energy portfolio. Lastly, it is very gratifying to see the progress that has been made in the realisation of cash from the legacy assets and the increasing confidence that this realisation will be achieved without the need for any net impairment of the book value.”