Hargeaves Services announces record profits

Feb 16 2010 By Karen Dent, The Journal

INDUSTRIAL giant Hargreaves Services announced record profits today and said it was excited by new opportunities to grow the business, especially in Europe.

The Esh Winning-based group’s profits jumped by 20.6% to £14.7m in the six months to the end of November but said revenue was down by 28.6% at £211.6m because of a big drop in commodity prices.

But the company, which employs around 2,500 people - half of them in the North East - said that its business model meant profits were protected from fluctuations in the prices of the goods it trades.

Hargreaves runs coal mines and coke works, a logistics and transport division, industrial services and it is moving into the renewable energy sector. It announced late last year that it had won the contract to build six renewable power stations - the first major business for its green energy wing Rocpower.

Its said Rocpower has the potential for a major roll out and the company expects the division to generate significant profits in the future.

But projects on the Continent are expected to be the main drivers for growth in the second half of this year as the market conditions become more stable.

It plans to expand its new Hargreaves Carbon Products business based in Belgium and is looking to take advantage of the growing Polish market by opening a new operation and stockyard to import coal for power stations.

Back in the UK, Hargreaves said its Tower Colliery project in Wales, which will be one of the biggest opencast mines in Europe, was progressing well and it has dealt with mechanical and geological issues at Maltby Colliery in South Yorkshire, which affected production in the first half.

Group chairman Tim Ross said: “The immediate trading outlook is encouraging whilst the future opportunities are extremely exciting.”