Giant Hargreaves Services powers on

Dec 18 2009 by Christopher Knox, The Journal

Chief executive Gordon Banham said: “The new power generation project is very important to us and should start to grow our sales once they enter full operation.

“This has helped us to create a number of jobs this year and it is a distinct possibility that a similar number of jobs will be added next year as we have a number of operations that will all come together to create a self-sustaining supply chain for the new sites.

“We are comfortable with the profit target suggested by analysts and look forward to a promising 2010.”

The trading update also showed that the firm is outperforming in other areas, with its coal operations continuing to perform very strongly.

The firm said it was also encouraged by the progress being made at the new coal trading operations in Belgium and Poland, and that it was continuing to invest in the Maltby colliery in South Yorkshire, with the firm already increasing the pit’s lifespan by two years from 2015 to 2017.

It did say that Maltby had experienced an inconsistent first half, with teething problems regarding new equipment and a death at the site hampering growth.

However, this did little to shake bullish sentiment among analysts. Brokers Brewin Dolphin said: “We would hope to see Rocpower increasing in significance as part of the group in coming periods.

“Coupled with the robust underlying trading, additional growth potential in Europe and an excellent record since flotation in 2005, we increase our price target from 920p to 955p and retain our Conviction Buy recommendation.”

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