Hargreaves at a glance

Hargreaves Services plc delivers key projects and services in the infrastructure, energy and property sectors.


Listed on AIM (LON:HSP) and headquartered in Durham, our 2,000+ employees are spread around the world delivering a vast array of projects and services.

Our history is steeped in coal through mining, sourcing, processing and blending, moving and handling. We still have a number of operations and services in the Mining & Minerals sector and now possess one of the largest mobile plant fleets in Europe, but today Hargreaves delivers much more.

After a series of strategic acquisitions, our land portfolio across the UK has increased to in excess of 18,000 acres. Our focus now is on adding value to this land through development with residential housing and renewable energy schemes.

Whilst we still carry out our traditional activities such as industrial services and logistics, these have now broadened to incorporate renewable energy, civil engineering and land restoration and remediation.

Take a look at the various sectors we work in to find out more.

NEWS

08th Jun 2018 Pre-Close Trading Update and Notification of Interim Results
08th Sep 2017 Posting of Annual Report and Notice of AGM
15th Feb 2017 Interim Results for the six months ended 30 November 2016
22nd Dec 2016 Post-Close Trading Update and Notification of Interim Results


PRESENTATIONS/RESULTS

Feb 2018 Interim Results for the six months ended 30 November 2017
Sep 2017 Annual Report
Aug 2016 Preliminary Results for Year Ending 31 May 2016
Apr 2016 Strategic Repositioning Update - 27 April 2016
Feb 2016 Interim Results 6 months ended 30 Nov 2015
Aug 2015 Preliminary Results for Year Ending 31 May 2015
Feb 2015 Interim Results for the six months ended 30 November 2014



EVENTS
22 January 2019 General Meeting
30 January 2019 Announce Interim Results

TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES

3. Full name of person(s) subject to the
notification obligation: The Bank of New York Mellon Corporation

4. Full name of shareholder(s)
(if different from 3.): BNY Mellon Service Kapitalanlage-Gesellschft mbH, Mellon Capital Management Corporation

Crossing above 10% to 10.36%

http://www.moneyam.com/action/news/showArticle?id=5061737

2 July 2015
HARGREAVES SERVICES PLC
(the "Group" or "Hargreaves")

Period end trading update for the year ended 31 May 2015


Hargreaves Services plc (AIM:HSP), the UK's leading supplier of solid fuel and bulk material logistics, provides the following period end trading update for the financial year ended 31 May 2015.

Aside from the financial impact of the recent settlement in relation to the Group's Liverpool Biomass Conversion project with a major UK power generator detailed below, underlying trading for the year has continued to be broadly in line with management's expectations. The Group's previously announced simplification programme is now substantially complete and the debt reduction initiative has progressed very well with cash generation in the second half slightly ahead of management expectations. After £6.3m of share buyback spend, net debt at the year end was £1.0m, benefitting by approximately £8m from the timing of year end payments and collections.


In February 2015, the Group embarked on the second phase of the simplification programme. In the face of falling coal prices and a significant reduction in the short term level of expected orders from UK power stations, the Group announced its intention to seek reductions in its overhead base and port and coal production operations. The Board set a challenging target of achieving a cost reduction of at least £3m by the year end and it is pleasing to note that this target has been exceeded. As part of this review, we have merged the Energy and Commodities and Production divisions to form one new division called Coal Production and Distribution (CPD). This second phase of the simplification programme has resulted in further one-off costs and charges totalling £4.5m. In addition to the cost of £1.4m for the programme of redundancies across the Group, we have provided £1.9m in respect of fuel hedges that are now ineffective given the reduced forward mining programme. We have also reviewed mining reserves and provided £1.2m against mine development costs for sites and reserves that we no longer anticipate mining in current market conditions.


Following the end of the year, after careful consideration, we have agreed to accept a reduced amount to conclude the Group's Liverpool Biomass Conversion project with a major UK power generator; a project which commenced in 2012 and largely concluded in early 2014. Whilst this will fall £2.4m short of the amount that the Group expected to collect on the contract, the decision will allow the Group to conclude the long running negotiations and move on and will result in a cash inflow to the Group of approximately £10m, the collection of which had been delayed by the negotiations. The provision shortfall of £2.4m will be charged against profits in the year ended 31 May 2015.


Since we reported half year results in February, a number of power stations have announced potential closure decisions and conditions in the coal markets have continued to deteriorate. There remains very limited revenue visibility from UK power generators. In addition, the coal price, a key driver of the profit in our coal production and distribution division, has continued to fall and is currently £3 lower at approximately £38 per tonne. Whilst this will impact short term profits, the Group continues to take the view that it is right to continue to protect the viability of its current Scottish operations, subject to reviewing mining plans and reducing forecast production volumes where necessary. The Board is of the view that the longer term opportunity afforded by these operations, including the synergy with its speciality coal distribution operation, continues to outweigh the negative impact on short term profits. The Group also continues to work hard with Government and other stakeholders on a solution that will allow the commencement of major restoration projects.


Market conditions in the steel sector have also further deteriorated since we last reported and we continue to closely manage counterparty risk against this challenging backdrop.


With the simplification programme largely complete, the Board is focussing on the strategic options for the Group going forward. These include the continued evaluation of share buybacks and selective expansion of the Industrial Services division. The Board expects to provide an update in conjunction with the preliminary results.

In the meantime, encouraging progress continues to be made with the development of the renewables and property portfolios, although the Group awaits the outcome of the Government's recently announced review of subsidies to on-shore wind farms.


Gordon Banham, Chief Executive Officer, commented: "Market conditions in the coal sector are the most challenging that I have ever seen. The restructuring process at Hargreaves was broad and deep and involved a lot of sacrifice across the organisation. Although we continue to see downward pressure on our profits, the Group has a secure and strong balance sheet position from which we can assess market movements and strategic options. The management team and staff deserve praise for their continuing effort and commitment to deliver profits in such difficult market conditions."

The Group expects to report preliminary results on 11 August 2015.


http://www.moneyam.com/action/news/showArticle?id=5068832

Upcoming Events

11 August 2015 Announce full year preliminary results
14 September 2015 Annual Report posted
24 September 2015 Ex-dividend date
25 September 2015 Record date
07 October 2015 Next AGM
23 October 2015 Payment date

http://www.hsgplc.co.uk/investors/financial-calendar.aspx

Further information via links below:

Hydro scheme plan for Glenmuckloch opencast revealed
15 July 2015

Plans to build a major hydro scheme on the site of an opencast mine in the south of Scotland have been revealed.

Developers claim the 100MW project at Glenmuckloch, near Kirckconnel, could generate power for more than a century.

It is the latest in a series of renewable energy schemes planned for the site, which is owned by Buccleuch Estates.

They are part of a project to redevelop the opencast mine as Glenmuckloch Energy Park.

The details have emerged in a scoping report for the pumped storage hydro scheme submitted to Dumfries and Galloway Council.

Buccleuch Estates has joined with mining company Hargreaves and 2020 Renewables to draw up the plans.

It will involve creating two reservoirs - one higher than the other - which will be connected by a tunnel with a pump-turbine.

The report states: "When excess electricity exists within the grid the pump-turbines go into pumping mode lifting water to the upper pond and when demand within the network exceeds available supply the pump-turbines reverse and change to generating mode with water released from the upper pond."





and to give a bit of history:

COMMUNITY ENERGY PARK TAKES CENTRE STAGE IN RESTORATION PROJECT
1 July 2014

Minister for Energy, Enterprise and Tourism, Fergus Ewing today
marked a significant development in the restoration of the
Glenmuckloch surface mining site as he launched the Glenmuckloch
community energy park.

Since work began late last year, over two million cubic metres of
material has been moved and shaped across the 235 hectare site.
Soiling and grass planting is now well underway, with particular focus
on the areas visible from the A76 trunk road.

Fergus Ewing & pupils from Sanquhar Academy
The restoration of Glenmuckloch is being delivered by Hargreaves Surface Mining Ltd and remains on track for
completion during the first half of 2015.

This pragmatic approach to restoration, and to bringing the site back into community use, will be
complemented by the community energy park.

Subject to conditions, Dumfries and Galloway Council has approved plans for up to two wind turbines in a
development adjacent to the Glenmuckloch surface mine, near Kirkconnel.

The energy park project is being delivered by four key partners – Scottish Mines Restoration Trust, Buccleuch
Estates, Hargreaves and Dumfries and Galloway Council - with each partner initially contributing £50,000.
Hargreaves has also announced it will contribute an additional £100,000 to the project.

Energy consultant 2020 Renewables carried out a feasibility study on the site earmarked for the turbines,
which covers approximately four hectares and is bounded by forestry and an access road.

Worth posting the following as it highlights that HSP are not just about coal/coke along with possible links to above post:

Project Manager / Developer (Solar)


Recruiter-Hargreaves Services plc
Posted----17 June 2015
Closes----17 July 2015
Ref--------OLR09202
Location-Yorkshire and Scotland
Sector---Energy, Renewable, Engineering


Further information


An exciting opportunity has arisen to join our successful Group. Reporting directly to the Head of Renewables; this Project Manager / Developer role will project manage all aspects of solar and small scale hydro-developments.

Key responsibilities of the Project Manager / Developer will include:

• You will manage and coordinate the contracts and consultants assigned to projects to ensure timely delivery, the quality of work and value for money as well as identifying, appraising and mitigating any planning, environmental, technical and commercial issues affecting development.
• You will submit planning applications, take responsibility for the Environmental Impact Assessment (EIA) and manage the consultation process pre and post planning application, including liaison with local communities and external consultants, local authorities and statutory agencies.
• To oversee grid connection processes from initial application to securing grid connection offers. You will understand the economic drivers of solar assets and be able to provide project information and support to secure project funding and solar panel supply and balance of plant contracts.
• Provide monthly reports to a variety of stakeholders on the progress of allocated wind sites.
• Support the development and delivery of the renewable team.
• Undertake detailed feasibility studies of the Hargreaves land bank for the potential of ground mounted and roof top solar and possibly hydro projects.
• You will develop environmental studies and permit strategies for specific projects.

The ideal Project Manager / Developer candidate will be able to demonstrate:

• A strong track record within the UK solar industry of successfully designing, developing and constructing solar farms.
• A commercial approach to the delivery of projects and a sound understanding of the technical aspects of power generation in the context of solar farm development.
• Excellent interpersonal skills, with the ability to build rapport quickly and develop long-term relationships with all stakeholders.
• Must have experience in solar development and construction and should ideally be degree qualified in a planning, surveying, engineering or environmental discipline.
• Experience and knowledge of environmental permitting regulations, additional experience in developing small scale hydro would be advantageous.

Hargreaves Services plc is listed on the London Stock Exchange and last year had a turnover of almost £900million. The UK’s leading coal production, trading and distribution company, the business has operations across thermal power, steel making, ports and logistics. Employing around 2,500 skilled people across a broad range of disciplines around the world, Hargreaves has offices in the UK, Germany, South Africa and South East Asia.

21 July 2015

Hargreaves Services plc

("Hargreaves" or the "Company")

Notification of Preliminary Results

Hargreaves Services plc (AIM: HSP), the UK's leading supplier of solid fuels and bulk material logistics, announces that it will report results for the year ended 31 May 2015 on Tuesday 11 August 2015.

A briefing for analysts will be held at 10.00am on the morning of the results announcement at the offices of Buchanan, 107 Cheapside, London EC2V 6DN.

For more information, or for analysts to register attendance, please contact Buchanan on 020 7466 5000.

http://www.moneyam.com/action/news/showArticle?id=5079227

FULL ANNOUNCEMENT VIA LINK AT BOP

11 August 2015

HARGREAVES SERVICES PLC

Preliminary results for the year ended 31 May 2015

Hargreaves Services plc (AIM: HSP), the UK's leading supplier of solid fuel and bulk material logistics, announces its preliminary results for the year ended 31 May 2015.

Highlights



· The Group has delivered a strong performance in very challenging markets

o Continuing Underlying Operating Profit of £42.8m

o Excellent cash generation and our Simplification Programme have resulted in Net Debt of only £1.0m at the end of the year

· Underlying trading for the year was broadly in line with management's expectations

· Group Simplification Programme is now substantially complete, leading to the disposal of Imperial Tankers and the closure of our Monckton coke operation

· Markets remain challenging with a further fall in the coal price since the interim results and a number of potential coal fired power station closures announced

· Final dividend significantly increased to 20.0 pence per share from 16.7 pence per share reflecting the previously announced decision to move to a higher payout ratio and the strong cash generation despite the difficult trading conditions

· Strengthened balance sheet and strategic options under active review



Commenting on the results, Chairman Tim Ross said:

"The last two years have presented the coal industry with extremely challenging market conditions. The Board has worked hard to ensure controllable risks are managed and to minimise the impact of risks beyond our control. We were clearly right to initiate the Simplification Programme last year. With a significant restructuring exercise largely behind us, we can concentrate on our strategic options to deliver future shareholder value."



(1) Continuing Operating Profit is stated before simplification costs of £9,130,000

(2) Continuing Underlying Operating Profit is stated excluding the simplification costs, the impact of the Biomass conversion project settlement, the amortisation of acquired intangibles and impairment of goodwill, impairment of non-current assets, and including share of profit in associates and joint ventures before tax

(3) Continuing Underlying Profit before Tax and Continuing Underlying Diluted EPS are stated excluding the simplification costs, the impact of the Biomass conversion project settlement, the amortisation and impairment of acquired intangibles, impairment of non-current assets and gain on disposal of subsidiaries

(4) Net debt comprises cash and cash equivalents, bank overdrafts and other interest bearing loans and borrowings

http://www.moneyam.com/action/news/showArticle?id=5092504

As we have commented before, this business is all about cash flow and the dividend in the short term, as such it might conceivably attract the attention of a brave buyout group who sees an opportunity at the current distressed valuation!

See new research note at: http://tinyurl.com/ol5kyaw

Hargreaves Services in Durham will not rule out further job cuts amid 'perfect storm'
18:45, 11 August 2015
By Tom Keighley

Hargreaves Services has not ruled out further job losses amid what has been described as a “perfect storm” of low coal prices and a collapse in UK coal import volumes.

Following news that the company’s profits had halved this financial year, Hargreaves’ finance director Iain Cockburn said much of the “heavy lifting” of an extensive restructuring plan had been done, but suggested a further deterioration in coal prices could spell further cuts.

Cost cutting – including the sale of Stockton-based Imperial Tankers last year and the winding up of Monckton coke works – generated a £67.8m reduction in net debt over the firm’s last financial year.

Esh Winning-based Hargreaves, which operates coal mining, logistics and industrial services divisions, is now looking to its extensive property portfolio, and renewable energy projects, to generate value.

Mr Cockburn said: “We’ve got great opportunities in our Dalquhandy and Poniel wind energy sites. Unfortunately the government has created a bit of uncertainty in wind, but if any sites are going to be viable without subsidies, subject to the cost of turbines, it’s these two.

“We’re also looking at solar on our opencast sites, which are particularly well suited to that kind of development and are many are within close proximity of network connections.

“We’ve submitted plans for a major hydro electric project to Dumfries and Galloway Council and we’re also getting heavily involved in biomass – having just signed a contract with Drax to handle much of its transport requirements.

“All of that shows we’ve got quite a broad spectrum of opportunities.”


As coal prices slumped from £44 per tonne to £38, Hargreaves saw continuing pre-tax profits fall by 52.2%, from £52.1m to £24.9m.

In an update to shareholders of its preliminary full year results to the end of May 2015, the firm said pre-tax profits had been impacted by an exceptional £12.2m charge owing to its restructuring plan.

Despite the fall Hargreaves said strong cash generation and underlying profit performance prompted the board to recommend an increase of 19.8% in the final dividend from 16.7p to 20p – bringing the full year dividend to 30p.

Revenues fell 28.8% from £869.2m to £662.2m.

Hargreaves insisted the UK coal market still offered opportunity in coming years, but acknowledged stronger political will to remove coal from the UK energy mix.


Chief executive officer Gordon Banham said the firm faced the most challenging markets he had experienced in more than 30 years of working in the coal sector.

He acknowledged the firm was “in for another difficult year” but said it was well positioned to tackle any challenges with a strong balance sheet.

He added: “I am confident that whilst we still face challenges, we are well positioned to work through this period of turmoil and find opportunities to optimise the value of our considerable assets and skills base.

“We have highlighted the key principal risks that we have faced as a business in the past few statements and these remain unchanged as we enter this financial year. Coal price (with its impact on our mining operations) and low thermal coal demand (as UK coal stations seek to clear excess coal stocks) are the two keys risks we face.

“We will continue to review the viability of and investment in our mining operations in light of coal price movements. We will also continue to press the Government for a solution to deal with the significant restoration liabilities faced by the taxpayer. Such a solution would allow the whole industry to deliver much needed restoration and safeguard many more jobs while we await a coal price improvement.”

Mr Banham also said planning assumed coal trading volumes would pick up again in the second half of the financial year, but warned the assumption was a risk based on market knowledge.

14 August 2015
Hargreaves Services Plc

Transactions in Own Shares

Hargreaves Services Plc announces that on 13 August 2015, in accordance with prior approvals from shareholders, it purchased from N+1 Singer Capital Markets Limited 65,000 ordinary shares at an average price of 335.7 pence per share. The purchased shares will be held as treasury shares. Following the above purchase, Hargreaves Services Plc holds 1,118,072 ordinary shares in treasury, and has 32,020,684 ordinary shares in issue (excluding treasury shares).

Therefore the figure of 32,020,684 may be used by shareholders as the denominator for the calculations by which they can determine if they are required to notify their interest in, or a change to their interest in the Company, under the Disclosure and Transparency Rules.

http://www.moneyam.com/action/news/showArticle?id=5094812

Hargreaves Services Plc. Hidden Asset valuation

http://frenzel-herzing.com/hargreaves-services-plc-hidden-asset-valuation/

18 August 2015
Hargreaves Services Plc

Transactions in Own Shares


Hargreaves Services Plc announces that on 17 August 2015, in accordance with prior approvals from shareholders, it purchased from N+1 Singer Capital Markets Limited 60,000 ordinary shares at an average price of 343.38 pence per share. The purchased shares will be held as treasury shares. Following the above purchase, Hargreaves Services Plc holds 1,178,072 ordinary shares in treasury, and has 31,960,684 ordinary shares in issue (excluding treasury shares).


Therefore the figure of 31,960,684 may be used by shareholders as the denominator for the calculations by which they can determine if they are required to notify their interest in, or a change to their interest in the Company, under the Disclosure and Transparency Rules.

http://www.moneyam.com/action/news/showArticle?id=5096401

03 September 2015
Hargreaves Services plc

Appointment of Non-Executive Director


Hargreaves Services plc ("the Company") is pleased to announce the appointment of Nigel Halkes to the Board as an Independent Non-Executive Director and Chairman designate of the Audit Committee.


Nigel is a former Managing Partner of Ernst and Young, UK & Ireland. He has considerable FTSE 100 experience, acting as a global client service partner for a number of major clients, including Rio Tinto plc, Centrica plc and BT Group. Nigel also gained valuable experience acting as audit partner for British Coal for ten years. He is a Founding Trustee of the charitable EY Foundation.

Timothy Ross, Non-Executive Chairman of Hargreaves commented: "We are extremely pleased to welcome Nigel to the Board and look forward to the benefit of the extensive experience he has gained in over 30 years of corporate advisory work. I and the rest of the Board look forward to working with him."

Regulatory information:


During the five years immediately preceding the date of this announcement, Nigel Leslie Halkes (aged 59) has held the following directorships/partnerships:


Current directorships:

Polka Children's Theatre Ltd

EY Foundation Ltd

Past partnerships:

Ernst & Young LLP

There are no other disclosures required under paragraph (g) of Schedule 2 of the AIM Rules.

http://www.moneyam.com/action/news/showArticle?id=5106337

Upcoming Events

14 September 2015 Annual Report posted
24 September 2015 Ex-dividend date
25 September 2015 Record date
07 October 2015 Next AGM
23 October 2015 Payment date

http://www.hsgplc.co.uk/investors/financial-calendar.aspx

This is just one persons view on HSP but of interest:

Stock in Focus: Has Hargreaves Services turned a corner?
Wednesday, Sep 09 2015 by Roland Head

http://www.stockopedia.com/content/stock-in-focus-has-hargreaves-services-turned-a-corner-106103/

18 September 2015

HARGREAVES SERVICES PLC
(the "Group" or "Hargreaves")

Intention to mothball steelmaking at SSI


We note today's press coverage regarding the intention to mothball steelmaking at Redcar steelworks (owned by Sahaviriya Steel Industries "SSI"). We have worked hard to support the operations at SSI and will continue to do so.

At this time we await clarification of the mothballing plans to evaluate the likely impact on the material handling services and coal procurement services that we provide to the plant and will update the market in due course. As reported in the Preliminary Results statement on 11 August 2015, these contracts contributed approximately £4m of operating profit in the last financial year.

http://www.moneyam.com/action/news/showArticle?id=5116043

Oh well. I wonder where the price is going to settle this time. Although I managed to get out of 40% of these on the rise from the bottom I'm fairly anxious about this share now. This isn't the biggest problem in my portfolio by any means but I'm sure you know that feeling when you just want to get out fast

Schroders plc increased their holding 21.09.15

From 5,320,410 (16.582%) to 5,622,545 (17.620%)

http://www.moneyam.com/action/news/showArticle?id=5118318

24 September 2015

HARGREAVES SERVICES PLC
("Hargreaves" or the "Company")

Posting of Annual Report and Notice of AGM

Hargreaves Services plc (AIM: HSP), the UK's leading supplier of solid fuel and bulk material logistics, announces that its Annual Report and Accounts for the year ended 31 May 2015 has been posted to shareholders and is available at the Company's website: www.hsgplc.co.uk


The Company's Annual General Meeting will be held on 7 October 2015 at 11.00am at Beamish Hall, Beamish, Stanley, Durham DH9 0YB.

http://www.moneyam.com/action/news/showArticle?id=5119022

Hargreaves Services plc

("Hargreaves", "the Group" or "the Company")

Trading Update

Hargreaves Services plc (AIM: HSP), the UK's leading supplier of solid fuels and bulk material logistics, provides an update on trading.

Thermal Coal Markets

Since we reported our final results in August the thermal coal markets have remained very weak and, although the rate of coal price decline has slowed, prices have softened further by approximately £1 per tonne.

In addition, and more significantly, demand for thermal coal in the UK remains exceptionally low as coal-fired power stations have been operating at low capacity levels in recent months with substantial accumulated stockpiles. The Company was previously expecting to receive orders for around one million tonnes of imported thermal coal in the second half of the financial year in addition to orders to sell its projected one million tonnes of coal production. However, as both the committed order book and future order visibility remain very low, we are now revising our thermal coal sales estimates to be around 0.5 million tonnes below our previous expectations for the current financial year. As a result we will reduce our planned imports and take further steps to look for opportunities to reduce production of loss-making thermal coals.

Liquidation of Sahaviriya Steel Industries (UK) Limited ("SSI")

On 18 September 2015 it was announced that steelmaking operations at Redcar were being suspended. SSI entered liquidation on 2 October 2015. Hargreaves is deeply disappointed by this outcome and its impact on the workforce, contractor base and surrounding Teesside communities.

Hargreaves has, over the last three years, committed significant effort, credit lines, services and expertise to support the operation at Redcar. Given the importance of maintaining the coke ovens to secure the option to resume steelmaking in the future we have made ourselves available to SSI, the UK Government and other stakeholders to support the development of plans that might preserve the coke oven operations. Contrary to press speculation over the weekend, Hargreaves has never contemplated buying the steelworks with a view to re-starting the blast furnace when market conditions improve. Our role has been limited to offering advice and assistance to develop a plan that could have preserved the coke ovens in an operational state whilst options for the site are fully investigated.

Following the announcement of liquidation, the Official Receiver has commenced a review of all operations. The Company is willing to support any viable plan that can be developed to prevent the coke ovens from being destroyed. In the absence of such a plan being developed and implemented, we have prepared plans to wind down operations on site with immediate effect.

Although we have been highly supportive of SSI and have extended significant working capital credit lines we have structured and conducted our dealings carefully to limit any credit exposure. As previously announced, the services and coal procurement that we have provided to the site generated £4m of operating profit in the last financial year and, if no viable plan can be implemented, we would expect a similar reduction in operating profit in future years. In addition to the loss of forward earnings, we anticipate a one off charge of around £1.5m relating to the redundancy cost of the staff involved in delivering the services on site and other contract demobilisation costs. We expect no further charges.

The liquidation of SSI will leave the Company with coal and coke stocks of approximately £14m. These stock positions have been very carefully managed and monitored and will be turned into cash in an orderly fashion over the next twelve months.

Closure of Eggborough and Liverpool Bulk Terminal Operations

The planned closures of Longannet, Ferrybridge and Eggborough have been announced over the last few months, as well as the recent decision by EON to cease operations at Liverpool Bulk Terminal. We have provided handling services at Eggborough and Liverpool Bulk terminal for a number of years. The closure of these operations will not have a material impact on the current financial year, other than an expected redundancy expense of around £0.7m. The closures will impact operating profits in the Industrial Services Division in the financial years ending 31 May 2017 and beyond by around £1.5m per annum. With the loss of gross margin from our operations at Redcar and with the risk of further announcements of unit or power station closures in the coming months, the Group will be stepping up its efforts to identify new contract opportunities for its Industrial Services Division and will continue to seek its steady international expansion.

Plant, Property & Renewables

Through its various actions the Company has created a large and diverse plant and property portfolio and efforts continue to unlock the value in our plant fleet and property portfolio. Management see the opportunity to develop significant value in the property portfolio through planning gain and development efforts. The Company also continues to evaluate projects at our sites that offer renewable energy development in wind, solar, pump-storage hydro, waste and biomass. We will also seek opportunities to generate value and improve utilisation of the plant assets, particularly in the face of soft demand from the coal mining operations.

Summary

In the face of the on-going uncertainty in its core markets the Company has already taken early and decisive action which has allowed the Company to effectively de-leverage its balance sheet. Whilst the developments outlined in this statement are disappointing, they are reflective of the present conditions in our core markets.

Although the short term potential to generate profits from our plant and property asset portfolios to offset the pressures on earnings that we are facing in the coal and services sectors is limited by development timelines, the longer term potential for value creation is very significant. Many of these projects and other opportunities also offer significant synergies and contract opportunities for our transport, industrial services and fuel sourcing operations.

http://www.moneyam.com/action/news/showArticle?id=5126051