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

Price and volume action has been quite interesting on this stock for the last month or so.

The volume has died down to a very small level with the large seller at 190 now finished. Buyers keep going a little bit every day and are becoming more aggressive at nibbling at the offer.

I am hoping they will start attacking 200 tomorrow which was the intraday high from a couple of months ago.

Hard to work out how much of the £66m legacy assets are being turned into cash so I expect that's holding the shareprice back until they crystallise

Possible jobs boost for Glenrothes as plans revealed for brownfield site
25th November 2016

More than 2,500 jobs could be coming to Fife if plans to transform one of Europe’s biggest brownfield sites is given the go-ahead.

The former Westfield open cast coal mine could become an industrial and energy-producing powerhouse for the region under plans submitted by site owners Hargreaves Services.

Development of the vast site, situated between Kinglassie and Cardenden, could also result in the reopening of an old railway line following the findings of a feasibility study commissioned as part of the proposals.

A vast solar farm is also planned, with panels placed on land and floating on the water-filled former quarry.

Food production and the recycling industries are two areas being targeted, with the planning application having followed a public consultation by Hargreaves, which purchased the site in 2012.

Hargreaves estimates around 1,075 construction jobs would be created over a ten-year-period, with the completed development capable of supporting an estimated 1,500 full-time equivalent jobs.

The plans have been welcomed by the neighbouring Cardenden Community Council who have been supportive of the proposals to regenerate the site for a number of years.

“We are fully supportive of the application as long as we get the environmental safeguards in place,” said David Taylor, Cardenden Community Council chairman.



EDIT- Also reported earlier this week:

22 December 2016 
Hargreaves Services plc

Post-Close Trading Update and Notification of Interim Results

Hargreaves Services plc (AIM: HSP), a diversified group delivering key projects and services to the infrastructure, energy and property sectors, today provides the following update on trading ahead of its interim results for the six months ended 30 November 2016.

The Group has experienced more stable trading conditions during the period with underlying Group profits for the six months expected to be in line with management expectations. Hargreaves anticipates a strong second half with expected outperformance in Coal Distribution and Property & Energy that will more than offset the impact of the expected contract delays in Industrial Services.

Results for the Coal Distribution Division include the Group's share of profit from our associate operation in Germany which is trading very strongly as its markets recover. The recent increase in coal price during the first half, together with more robust coal demand, is expected to also result in the UK operation exceeding forecasts. Profits for the Division are currently expected to exceed management expectations by £3m for the full year.

The Industrial Services Division set aggressive targets for new business gains over the year as a whole. Whilst good progress continues to be made, it now seems unlikely that these will be fully achieved due to a delay in the commencement of a major project in Hong Kong. The Division's UK business has traded strongly and is expected to continue to do so through the second half.

Good progress continues to be made in the evaluation and development of the Group's Property and Energy project portfolio. Profits realised from the Property Division are expected to slightly exceed management targets over the year as a whole, although the timing of property sales remains difficult to predict.

The integration of the Blackwell acquisition is progressing well and underlying trading performance has been strong and in line with expectations. The Group has re-appraised the costs to complete and remediate two legacy contracts that were identified at the time of acquisition and as a consequence goodwill will be increased by £2.6m to £3.4m to reflect these additional costs, a level that management consider sustainable given the underlying profitability and cash generation of the operation.  The escrow account established at the time of acquisition continues to provide protection in relation to legacy contracts and no further provisions or adjustments in respect of pre-acquisition contracts are expected. Good progress continues to be made in the realisation of cash from sales of former Blackwell properties.

Management remain pleased with the rate of conversion of legacy assets into cash. As reported in October the Group's existing coal stocks have been sold and we continue to expect the full recovery of loans to the Tower joint venture. Working capital performance across the Group also remains in line with expectations. The Group is currently targeting to close the financial year with less than £5m of net debt.

The Group expects to report its interim results for the six months ended 30 November on 15 February 2017. A briefing for analysts will be held at 10.00am on the morning of the results at the offices of Buchanan, 107 Cheapside, London EC2V 6DN. For more information on the briefing, please contact Buchanan on 020 7466 5000.

http://www.moneyam.com/action/news/showArticle?id=5470192

Boost from the Black Stuff: Hargreaves Services delivers positive trading update
08:55 22 Dec 2016

The AIM-listed group said its Coal Distribution arm has been boosted by good results from its associate operation in Germany, which has been trading “very strongly."



The black stuff gave a boost to shares in Hargreaves Services PLC (LON:HSP) today after the coal and solid fuels group said trading has stabilised in the first-half and met its expectations.

Notably, the AIM-listed group said, its Coal Distribution arm has been boosted by good results from its associate operation in Germany, which has been trading “very strongly as its markets recover.“

In a pre-close season trading statement, Hargreaves Services said: “ The recent increase in coal price during the first half, together with more robust coal demand, is expected to also result in the UK operation exceeding forecasts."

It added: “Profits for the Division are currently expected to exceed management expectations by £3mln for the full year.”

The company also said it has seen strong trading in its Property & Energy project portfolio, with profits from this arm to outpace management expectations.

But it added that its Industrial Services is unlikely to meet the targets set due to a delay to a major project in Hong Kong.

However, Hargreaves Services said it still expects a strong second half of the year as the outperformance of its Coal Distribution and Property & Energy units offset the softer trading in Industrial Services.

Jon Hopkins

Hargreaves Services prioritises safety with new Mercedes-Benz Arocs units
10 January 2017
Emma Shone



Hargreaves Services has put safety first with its recent order of 21 new Mercedes-Benz Arocs tractor units with StreamSpace cabs.

Replacing 21 older Scania vehicles, the new trucks are all fitted with an optional safety pack, including Active Break Assist and Proximity Control Assist systems, as well as a series of cameras and sensors for detecting vulnerable road users.

Paul Boulds, Hargreaves’ workshops and fleet manager, said: “We are always conscious of our duty of care.

“While you cannot put a price on safety, the additional cost of these features was not prohibitive. Hopefully we won’t need them, but it’s nice to know they’re there just in case.”

15 February 2017 
HARGREAVES SERVICES PLC

Interim Results for the six months ended 30 November 2016
 
Hargreaves Services plc (AIM: HSP), a diversified group delivering key projects and services to the infrastructure, energy and property sectors, today announces its interim results for the six months ended 30 November 2016.

HIGHLIGHTS
 
·      Overall performance in the first half was in line with management expectations;

·      Strong prospects in Germany expected to drive outperformance in second half as announced in December;

·      Property & Energy portfolio development progressing well with planning permission granted for an energy-from-waste plant near Grangemouth and the planning decision on our Blindwells development expected in March;

·      Good progress being made with the integration of CA Blackwell to establish our new Specialist Earthworks division;

·      Wind down of coal mining activities and the commencement of the site restoration programme at Tower underpins the expectation of full repayment of Joint Venture loans;
·      Legacy asset realisation programme progressing well, with all surplus coal and coke stocks contracted;

·      Net debt expected to fall materially during the second half, with the final outcome dependent on the timing of material property disposals;
 
Commenting on the interim results, Chairman David Morgan said: "It is pleasing to see how much progress we have made towards the three strategic goals we set ourselves a year ago. First, earnings from the continuing Distribution & Services operations are well set to deliver operating profit within the target range that we set. Second, good progress is being made in creating and then delivering the targeted £35m-£50m uplift in value from our Property & Energy portfolio. Lastly, it is very gratifying to see the progress that has been made in the realisation of cash from the legacy assets and the increasing confidence that this realisation will be achieved without the need for any net impairment of the book value."

***More From Link Below***

http://www.moneyam.com/action/news/showArticle?id=5496578

Hargreaves Services sees profits drop, but hikes dividend and stays upbeat on second half
07:53 15 Feb 2017

The AIM-listed firm said its underlying pre-tax profits dropped by 71.9% to £0.9mln for the six months to the end of November, as continuing revenues fell by 2.2%.



Coal distributor Hargreaves Services PLC (LON:HSP) reported a drop in first-half profits, but the group still hiked its interim dividend and repeated its expectations that strong prospects in Germany will “drive outperformance in the second half.”

The AIM-listed firm said its underlying pre-tax profits dropped by 71.9% to £0.9mln for the six months to the end of November, as continuing revenues fell by 2.2% to £170.9mln.

But the group – focused on projects, services, and logistics to the infrastructure, energy and property sectors - said “overall performance in the first half was in line with management expectations.”

The Durham-based firm also raised its interim dividend to 2.7p per share, up from 1.7p a year ago.

Hargreaves’ chairman David Morgan said: "It is pleasing to see how much progress we have made towards the three strategic goals we set ourselves a year ago.

"First, earnings from the continuing Distribution & Services operations are well set to deliver operating profit within the target range that we set.

"Second, good progress is being made in creating and then delivering the targeted £35m-£50m uplift in value from our Property & Energy portfolio.

"Lastly, it is very gratifying to see the progress that has been made in the realisation of cash from the legacy assets and the increasing confidence that this realisation will be achieved without the need for any net impairment of the book value."

Jon Hopkins

29 March 2017 
Hargreaves Services plc
("Hargreaves" or "the Group")

Planning Permission Granted for Blindwells Site

Hargreaves Services plc (AIM: HSP), a diversified group delivering key projects and services to the infrastructure, energy and property sectors, is pleased to announce that it has today received planning approval in principle for 1,600 new homes at Blindwells, on part of a 392 acre site near Tranent in East Lothian, which is situated less than 15 miles from Edinburgh city centre. The approval, which includes affordable housing and mixed use development, represents the first phase of a wider master plan for more than 3,200 homes to be developed over the next 12-15 years.

The Blindwells site, which was formerly an open cast coal mine until its closure in 2000, will require some initial consolidation work and the development of infrastructure such as roads and connections to utility networks. This work is expected to commence shortly and will require upfront capital investment by Hargreaves in groundworks and enabling infrastructure at a cost of approximately £5.0m, which is expected to be funded from the Group's existing resources. Subsequently, it is expected that Hargreaves will undertake the phased sale of residential development plots to national and local house builders over a number of years.


The grant of planning is expected to generate a meaningful uplift to the market value of the Blindwells site relative to the book value included in the Group's Net Assets which totalled £129.2m at the 30 November 2016. As previously announced, the Group has commissioned a formal independent valuation of our property portfolio for publication in our Preliminary Results in August 2017, by which time we expect our assessment of the development options for the site will be more complete.

The valuation report will include an assessment of the value of the Blindwells site reflecting today's grant of planning permission. Going forward this valuation will be revised and reported on annually to enable shareholders to track progress.

Commenting on the planning approval, Iain Slater, Development and Estates Director for Hargreaves, said: 'We have worked in partnership with East Lothian Council to deliver its original vision for a new community and we are confident that Blindwells will provide a high quality lifestyle set around some of Scotland's finest countryside. We're delighted that the first phase has been granted planning approval in principle and we look forward to working with the Council to ensure delivery of the targeted development investment and associated benefits for East Lothian."

Gordon Banham, Chief Executive Officer of Hargreaves, said: "We are delighted to have secured this planning permission. It marks another important milestone in achieving the target we set ourselves to deliver £35-50m of new value from our overall property portfolio over the next five years. Blindwells is an important part of that portfolio and is an excellent and exciting site. The grant of planning permission now allows us to develop and commercialise the site and we look forward to providing further updates and information as our plans progress."

http://www.moneyam.com/action/news/showArticle?id=5521926

My average on this would appear to be 3.06 which is frankly a miracle as I managed to add very near the bottom when the price got stupidly low and avoid adding anything on the trip down from my first entry at 4.20.

Over the weekend I shall look up the NAV. My memory suggests that even at 300 the share price still looks crazy low.

Here we go.
2016 NAV 131m
No. of shares in issue 31.9m

=£4.11 per share.

Today the NAV just increased on the planning approval by an amount I'm unable to estimate but clearly the market considers healthy

Hargreaves Services to turn former opencast mine into town with 3,200 homes
By Coreena Ford
30 MAR 2017

The Durham coal giants have received planning permission which will trigger work in East Lothian



A plan by one of the North East’s largest companies to build a new town in Scotland is under way after planning approval for the first phase was granted.

Hargreaves Services, the Durham-based mining and bulk material logistics firm, announced plans in January 2015 which would breathe new life into a former open cast mine, creating a major development comprising more than 3,000 homes, a school, community facilities and commercial units in East Lothian.

Hargreaves acquired the Blindwells site in July 2013 from the liquidators of collapsed Scottish Coal, in a portfolio of some 30,000 acres of land.

The 392-acre site, which stands on the north east side of the A1, overlooks the Firth of Forth, and is likely to become a commuter settlement for Edinburgh.

It had been allocated for residential development by East Lothian Council, and Hargreaves submitted an application for the plans in October 2014 - and now firm has been given the green light for those plans.

The approval, which includes affordable housing and mixed use development, represents the first phase of a wider master plan for more than 3,200 homes to be developed over the next 12 to 15 years.

The Blindwells site was formerly an open-cast coal mine until its closure in 2000 and the firm said it will require initial consolidation work, as well as the development of roads and connections to utility networks. Hargreaves will invest £5m in that work.

The work is expected to start soon, after which Hargreaves will carry out the phased sale of residential development plots to national and local house builders over a number of years.

Hargreaves said it expects the grant of planning permission to generate a “meaningful uplift” to the market value of the Blindwells site relative to its book value, which was £129.2m as at the end of November.

Gordon Banham, chief executive officer of Hargreaves, said: “We are delighted to have secured this planning permission. It marks another important milestone in achieving the target we set ourselves to deliver £35-50m of new value from our overall property portfolio over the next five years.

“Blindwells is an important part of that portfolio and is an excellent and exciting site.

“The grant of planning permission now allows us to develop and commercialise the site and we look forward to providing further updates and information as our plans progress.”

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.

Things beginning to look promising here. Significant volume going through at 335 over the last 10 days or so. It's clear someone considers that a good price to invest.

Hoping the sellers will dry up at this point soon. Surprised we haven't had a RNS yet.

Energy

We are developing exciting renewable energy projects as well as providing a range of services to the power generation and renewables sectors


Hargreaves is looking to maximise the value of its extensive land portfolio through the development of renewable energy projects in the UK including waste-from-energy and onshore wind projects in areas of high wind speed. A number of other projects and collaborations are ongoing, centred around the Group's electricity grid connections.

In addition to the renewable energy projects, Hargreaves is also a leading provider of quality-assured contract services to power stations in the UK and abroad. These services were honed in the coal / thermal power stations of the UK, where Hargreaves has operations with 90% of generators.

The Group has successfully transferred these skills into more modern CCGT and CHP plants and has been able to export these skills into the Asia Pacific region.

18 May 2017 
Hargreaves Services plc

Sale of Underground Mining Equipment

Hargreaves Services plc (AIM: HSP), a diversified group delivering key projects and services to the infrastructure, energy and property sectors, is pleased to announce that contracts have been signed for the sale of surplus underground mining equipment to an overseas buyer for an undisclosed cash consideration.

The equipment was originally acquired for use at the Group's former deep mine at Maltby and formed part of the Group's legacy asset disposal programme. Although the precise sale terms are subject to a confidentiality agreement, the proceeds are in line with the carrying book value of the equipment on the Group's balance sheet. The consideration is payable in stages with the aggregate sale proceeds to be received in roughly equal amounts in the financial years ending 31 May 2017 and 31 May 2018.

Gordon Banham, Chief Executive Officer, commented: "This sale represents another positive step in the realisation of our portfolio of legacy assets. By maintaining a strong financial platform throughout our restructuring process, we have given ourselves the time and flexibility to realise value from our legacy assets in a structured and methodical manner."

http://www.moneyam.com/action/news/showArticle?id=5551415

Richard Griffiths and controlled undertakings have crossed the 3% threshold:

1,000,000 shares (3.13%)

9. Chain of controlled undertakings through which the voting rights and/or the
financial instruments are effectively held, if applicable

Blake Holdings Limited------------------------708,143
Seren Investment Management Limited---- 125,979
Cream Capital Limited----------------------- 165,878
Total------------------------------------------ 1,000,000  
 
The above undertakings are all controlled by Richard Griffiths

http://www.moneyam.com/action/news/showArticle?id=5552364

14 June 2017 
Hargreaves Services plc

Update on Group's Energy Interests and Proposed Board Change

Hargreaves Services plc (AIM: HSP), a diversified group delivering key projects and services to the infrastructure, energy and property sectors, provides an update on its energy project development activities and strategy.

Highlights

·      The creation of a new wholly owned subsidiary, Brockwell Energy Limited ("Brockwell"), to oversee the development and potential spin-off of the Group's energy project interests;
 
·      Brockwell will be led by Alex Lambie, as CEO, supported by Iain Cockburn, the Group's Finance Director, who will step down from the Hargreaves Services plc Board once a suitable replacement has been identified; and
 
·      A Memorandum of Understanding ("MOU") with the UK Green Investment Bank ("GIB") to deliver the Earl's Gate Combined Heat & Power ("CHP") project.


Background

Over the past two years the Group has made significant progress in developing an exciting portfolio of energy projects which includes energy from waste ("EfW"), onshore wind and flexible gas generation. The energy projects were originally identified as a catalyst that would enhance the value of the Group's property portfolio; locking in long term land rentals from developed energy projects. However, as our appraisal of the projects progressed it became clear that they also have the potential to create significant value as they are taken through the planning and development process.

Key projects under active evaluation and/or development include:

·      Two EfW projects, namely Earl's Gate CHP (Grangemouth, Scotland) and Westfield (Fife, Scotland);
 
·      400MW of onshore wind projects, including a single 300MW scheme, the construction of which will deliver significant site restoration benefits; and
 
·      Flexible gas generation projects centred around a number of the Group's own grid connections. 

Recognising the potential for value creation, the Board is seeking an approach that will both reduce the complexity of the Group's existing operations and limit the capital demands on the Group, in line with its stated simplification strategy. This is likely to lead to the Group reducing its economic interest in the energy portfolio through the injection of external capital into Brockwell, which will both control the development risk and protect the Group's balance sheet.


Future Development of Energy Projects through Brockwell 

Although the Group's portfolio of energy projects offers the opportunity for significant value creation, its development through build-out will require substantial capital. The balance sheet value of the energy portfolio at 31 May was £4.1m and this is expected to rise to £8.3m by 30 November 2017 largely as a result of ongoing pre-development expenses incurred on the Earl's Gate project.

The Board strongly believes that there exists today an exciting opportunity to use the Group's projects and assets as the platform upon which to build an integrated energy business in the UK including onshore wind, solar PV, EfW and flexible technologies including gas and energy storage.

The Board remains cognisant of the need to manage risk and control the level of any future financial demands placed on the Group as it balances the creation of shareholder value against the generation of surplus cash. The Board also remains committed to continuing the process of simplifying the Group's strategy and operations. In accordance with its strategy the Board has resolved that the Group will inject all of its energy interests into a newly formed, 100% owned ring-fenced subsidiary, Brockwell. The Group's property arm and Brockwell will continue to work together to exploit the Group's extensive land bank and, in particular, to identify additional solar and onshore wind development opportunities. The Group will maintain a carried interest in future energy projects through its equity interest in Brockwell.


Management of Brockwell and proposed Board change

The Board is delighted to confirm the appointment of Alex Lambie as Chief Executive Officer of Brockwell. The appointment of Alex adds significant energy sector experience and expertise to the Brockwell management team.

Over his 40-year career, Alex has proved himself to be one of the most successful senior executives in the energy sector. This was most recently highlighted by his success with Welsh Power Group Ltd. As the majority shareholder and Non-Executive Chairman he built Welsh Power Group into an integrated energy business with an enterprise value exceeding £1 billion from an initial investment of just £38 million. This involved raising fresh funding and developing new operations, such as backing the MBO of Uskmouth Power and raising £650 million for the construction of a major 850 MW CCGT development.  Alex finally sold his controlling interest in Welsh Power Group in November 2015.

Prior to Welsh Power Group, Alex led the highly successful European expansion and risk diversification strategy for Spain's largest electricity company, Endesa, investing over €5 billion of equity to acquire and develop businesses in Italy, France, the Netherlands, Portugal and Morocco. He also led the turnaround of Dawson's US business operations, returning the lossmaking company strongly back to profit in less than 18 months. He was also responsible for the first ever international fuel procurement deal in the UK, delivering a £2bn contract for National Power Plc to counteract the lack of competition in the home market.

In addition to fulfilling his role as Group Finance Director, Iain Cockburn has been responsible for the development of the Group's energy interests over the past two years. In view of the significance of the strategic opportunity for the Group represented by the Group's portfolio of energy projects, Iain has agreed to join Brockwell on a permanent basis as Chief Financial Officer. Iain will remain in his post as Hargreaves Group plc's Finance Director until a replacement has been found and an orderly handover undertaken.


Earl's Gate Project Update

We are pleased to report excellent progress on the development of the Earl's Gate project. This project is a circa 200,000 tonnes per annum, 22MW electrical CHP plant that will utilise well-established and proven technology from one of the world's leading providers. The CHP plant will benefit from selling heat and power into an existing private heat and power network at the Earl's Gate complex, making it one of most efficient CHP plants of its type in the UK.

Following the grant of planning permission in January 2017, the Group announces that it has agreed an MOU to develop the project in partnership with GIB. Under the terms of the MOU, GIB has deployed technical and commercial resources to work alongside the Brockwell team with the intention of taking a 50% equity stake in the project at financial close, expected by the end of December 2017. The projected capital expenditure required for the plant is circa £150m which will likely be funded by £50m of equity and approximately £100m of non-recourse project debt.

The Board expects the Earl's Gate project to generate significant long-term returns and value. In the short term, the successful financial closure of the project should generate a modest development premium and offer an opportunity for the Group to co-invest alongside a highly credible and successful third party investor.


Management Comments

David Morgan, Chairman of Hargreaves, commented: "Exciting progress continues to be made in developing value in our energy projects. The formation of Brockwell Energy creates an opportunity to raise the specialist capital and create the partnerships necessary to enable the Group to extract maximum value across the entire portfolio of energy projects whilst allowing the Group to control the level of any investment and to focus on cash generation and the continuing simplification and development of the Group."

Gordon Banham, Chief Executive Officer of Hargreaves, commented: "Iain has been a great finance director and business partner and whilst I will miss working with him on the Hargreaves Services plc Board, I am delighted that he will be supporting the development and funding of Brockwell. I am also excited that we have been able to attract Alex Lambie to lead Brockwell. Alex's track record speaks for itself and I am pleased to see that Alex and Iain have already formed a strong working partnership. Iain will remain in place in his Group role until a replacement has been found to ensure a seamless transition. I would like to acknowledge and thank Iain for his ten years of dedicated service during which time he has played a key role in the development of the Group's activities, through both good and challenging times. I look forward to the value and cash that Brockwell can help the Group to realise from its property and energy investments."

Alex Lambie, Chief Executive Officer of Brockwell, commented: "Since first engaging with Hargreaves to advise on the development of its energy projects, I have been struck by the quality of the project portfolio and the drive and professionalism of the team that has been assembled within the Group to develop and manage these projects. Together, the projects and the team offer the opportunity to create significant value from the current project portfolio and provide a strong platform to develop a larger business focused on the development and delivery of energy projects across a balanced portfolio of technologies. I am delighted to be tasked with leading the team and excited by the opportunities that lie ahead."

http://www.moneyam.com/action/news/showArticle?id=5567002

5 July 2017 
Hargreaves Services plc

Post-Close Trading Update and Notification of Preliminary Results

Hargreaves Services plc (AIM: HSP), a diversified group delivering key projects and services to the infrastructure, energy and property sectors, provides the following update on trading ahead of reporting its preliminary results for the year ended 31 May 2017.

The Group is pleased to report that overall trading in the run up to the year end was consistent with management expectations and consequently the Group expects underlying operating profit for the year ended 31 May 2017 to be in line with current market expectations. Underlying profit before tax is expected to be ahead of market expectations due to the net interest charge being £0.4m lower than anticipated for the full year.


Distribution and Services Operations

The Coal Distribution Division, which includes results from our German operating associate, is expected to report profits above management expectations. Favourable market conditions and an expanded local trading team have combined to deliver significant outperformance from our German associate more than offsetting the continued softness in the UK coal distribution and production operations. This outperformance has allowed the Group to accelerate the repositioning of its UK operations; exiting its Immingham port terminal space and undertaking preparations for investment in new low-cost briquetting products at Maxibrite.

Good progress has been made since the acquisition of Blackwell, moving the Earthworks business away from complex "design and build" civil engineering contracts to focus on its core competence of earthworks. Exceptional losses incurred in the year on legacy contracts have been partially mitigated by gains and profits from the realisation of plant. Excluding exceptional losses on legacy civil engineering contracts, the underlying operating profit for the Earthworks business is expected to be £1.0m below management expectations reflecting the expenses and margin impacts of withdrawing from civil engineering activities. All legacy contracts are now largely complete.

Operating profit in the Industrial Services Division was in line with management expectations.

A highly competitive market and low volumes combined to create an unusually poor final quarter performance for the Logistics Division and, as a result, the Division will report a full year break-even result, £1.3m below initial management expectations for the year. Management is focused on reducing overhead and re-scaling the operation to align to the current market conditions.


Property & Energy

The Group expects to report profits for the Property and Energy Division that are in line with management expectations for the year end 31 May 2017. Following the grant of planning permission at Blindwells in East Lothian, the Group continues to make good progress towards generating between £35m to £50m of incremental value from its property and energy portfolios. The independent property valuation is continuing and the Group expects to report the results of that valuation with its preliminary results. Positive progress continues to be made in the development of the plans announced on 14 June 2017 to form an independent energy business.


Legacy Asset Realisations and Exceptional Items

The Group is pleased to report that excellent progress has been made in the realisation of cash from legacy assets. The contract for the sale of underground assets from Maltby represented an important milestone. Remaining legacy assets consist largely of mobile plant and loans due from the Tower joint venture, both of which are expected to convert fully into cash in future periods.

The Group expects to book a net exceptional charge of £0.5m relating to various non-recurring trading items, asset impairment adjustments and discontinued activities.


Net Debt 

Net Debt at 31 May 2017 was £15.7m (Net Debt at 30 November 2016: £36.9m). Working capital performance across the Group remained in line with expectations.


Notification of Preliminary Results

The Group expects to report its preliminary results for the year ended 31 May 2017 on 8 August 2017. A briefing for analysts will be held at 10.00am on the morning of the results announcement. For more information on the briefing, please contact Buchanan on 020 7466 5000.

http://www.moneyam.com/action/news/showArticle?id=5580028

A reminder:

08 August 2017 Announce full year preliminary results

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

8 August 2017
HARGREAVES SERVICES PLC

Preliminary results for the year ended 31 May 2017

Highlights

· Excellent progress toward stated strategic targets for operating profit, value creation from property and the conversion of legacy assets into cash
o The Group has delivered Continuing Underlying Operating Profit of £9.8m, an increase of 113% on the prior year
o The Development value of the property portfolio shows £52.1m of potential unrealised gain on independent Red Book basis
o Strong progress in the orderly realisation of legacy assets into cash, including the agreement to sell the surplus underground mining equipment

· Strong performance in trading operations in Germany compensated for legacy contract issues in Earthworks and a challenging final quarter for Logistics

· Continental European steel and specialised carbon markets remain buoyant, offering long term potential for investment and improved visibility and resilience of forward earnings

· Planning permission secured for Blindwells, a major new town development close to Edinburgh

· Brockwell Energy established to develop value from the Group's energy projects and assets without recourse to the Group's balance sheet

· Realisation of £25.5m of legacy assets into cash with an additional £3.2m of underground mining assets contracted for sale post year end

· The Net Asset Value per share excluding any unrealised property gains as at 31 May 2017 was £4.32 per share

· Focus on simplification continues

· Final dividend of 4.5 pence in line with the Group's 40% pay-out ratio target, bringing proposed full year dividend to 7.2p, a 213% increase on prior year

Commenting on the results, Hargreaves Chairman David Morgan said:
"These results demonstrate the excellent progress made by the Group over the last year. The achievement of our Group profit target was a positive step forward, which we believe marks a real turning point for the Group. The independent property valuation exercise provides further confidence about the longer term value that we aim to create from our property portfolio. Whilst challenges remain to be overcome in some of our businesses, we are on track to achieve or over-acheive the three key strategic goals we set ourselves in 2016. We will continue to be careful in managing capital allocation and risk as we move forward."


Analyst meeting

A meeting for analysts will be held at 10.00am this morning, 8 August 2017, at the offices of Buchanan, 107 Cheapside, London EC2V 6DN. Please contact Buchanan on 020 7466 5000 for further information.

"Dividend

The Board proposes a final dividend of 4.5p, consistent with the targeted 40% pay-out ratio. If approved at the Annual General Meeting, this will result in a dividend for the full year of 7.2p compared with 2.3p in the previous year, an increase of 213%. The proposed final dividend will be paid on 20 October 2017 to all shareholders on the register at the close of business on 22 September 2017."

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