Hargreaves Services presses ahead with green energy plans
Feb 17 2010 by Karen Dent, The Journal
INDUSTRIAL giant Hargreaves Services announced record profits as it revealed plans to chase more coal business on the continent and push ahead with its green energy ambitions in the UK.
The group, based in Esh Winning, County Durham, said pre-tax profits jumped by 20.6% to £14.7m in the six months to the end of November but revenue fell by 28.6% to £211.6m because of a big drop in commodity prices.
Chief executive Gordon Banham said: “Commodity prices are now 60% of what they were last year but our margin is fixed per tonne and we’ve sold more volume as well.
“We are producing more tonnes through our carbon pipeline. Our business model is always not to expose ourselves to commodity prices.”
The business, which is a partner with former miners in the Tower Colliery opencast mine in Wales, runs Maltby Colliery and Monckton Coke Works in South Yorkshire and also operates in logistics, waste and industrial services. It believes the most immediate growth will come from its interests in Europe.
It plans to expand the 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.
Mr Banham said: “In Europe, we are doing exactly what we are doing in the UK – bringing in big cargoes from carbon-based producers , taking them into the terminals and pushing them out through out carbon pipeline.”
But the group also has its sights set on the green power market through its alternative energy wing Rocpower, which won contracts to build six renewable power stations last year.
“The first site came on line in November in Wakefield and it will produce 7MW of green electricity.
“It perfectly fits with the Hargreaves model,” said Mr Banham. “There are four or five more planned. One on Teesside is just about to go into planning and could be running by 2011.”
Hargreaves aims to have two green power stations operating in South Yorkshire by the end of this year.
