Hargreaves Services offloads coal operations but half-year figures hit by delays to HS2

0
18

Hargreaves Services Plc (LON:HSP) announced it will no longer produce or purchase coal but half-year results have been impacted by delays in the construction of the HS2 railway.


The AIM-listed firm ceased coal mining in July and all material coal-related revenue activities last month, when it sold them to its German joint venture HRMS, although the reduction in coal volumes affected trading.


The provider of services to the industrial and property sectors said profits have always been more weighted in the second half, and this year this will be exacerbated by the delays to HS2 and the timing of completions within Hargreaves Land.


Revenue in the six months to November 30 dropped 26% to GBP92mln, while profit before tax plummeted five-fold to GBP1mln.


The company decided to resume the interim dividend and proposed a payout of 2.7p per share after cutting net debt to GBP20mln, from GBP40mln in November 2019.


Shares dropped 7% to 248.8p on Wednesday at the opening bell.

LEAVE A REPLY

Please enter your comment!
Please enter your name here