Durham-headquartered mining, energy and logistics company Hargreaves Services

Durham based Hargreaves Services report rise in operating profits

Durham-headquartered mining, energy and logistics company Hargreaves Services operating profit for the six months to 30 November 2017 was £2.3m, up from £2.1m for the same period in 2016 but reported overall losses in the first half of its financial year, although bosses praised its underlying performance.

Hargreaves incurred pre-tax losses of £1.9m due to exceptional items of £2.8m.

The exceptional costs related to the completion of three legacy contracts inherited from the acquisition of CA Blackwell, which generated revenues of £9.9m but led to operating costs of £2.8m.

Hargreaves' revenues also slipped from £170.9m to £150.3m, although legacy asset sales of £10.2m were included in 2016's figures while only £400,000 of such sales were generated in the six months to 30 November.

Chairman David Morgan said: "The group's operational focus on delivering consistent performance with an emphasis on risk management and margin improvement is beginning to bear fruit.

"Progress on the key strategic objective of realising value from the group's property and energy assets has continued with further significant news, particularly in respect of the energy portfolio, expected in the next few months. The group has a strong balance sheet to support its strategy and the board remains confident that there is substantial shareholder value to be realised."

 

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