Published: February 17, 2016 |

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The challenges in UK coal and steel hit the half year results of solid fuel provider Hargreaves Services, which reported a 82 percent drop in pre-tax profit and that it was cutting its dividend by 83 percent.

Shares in the firm sank over 7 percent in early deals to stand at 220p.

Chairman David Morgan said the group would be reducing exposure to thermal coal markets, used in power stations, in the next 18 months given further coal station closures and weak commodity markets.

“This follows the decisive actions taken in the past eighteen months to simplify the group and exit markets such as coke production and trading.”

For the six months to end November, pre-tax profit was £3.2mln compared to £20.3mln in the same period in 2014, on revenues that were 50 percent lower at £174.8mln.

The interim dividend payment will be 1.7p compared to 10p last year.

However, Hargreaves said it was confident profitability could be maintained even in such severe market conditions and it has taken steps to reduce costs and a restructuring of the firm is ongoing.

This month, the firm bought Blackwell - a civil engineering group, for£11.85mln, which it says represented an important strategic step to develop value.

Source: (February 16, 2016) Proactive Investors

About Hargreaves
Hargreaves Services Plc is a United Kingdom-based company, engaged in providing sourcing, producing, processing, handling and transporting carbon-based and other bulk materials. The Company operates through four divisions: Production, Energy & Commodities, Transport and Industrial Services.

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