Hargreaves Services PLC Trading update (7359E)
March 15 2022 - 3:00AM
UK Regulatory
TIDMHSP
RNS Number : 7359E
Hargreaves Services PLC
15 March 2022
Hargreaves Services plc
("Hargreaves" or the "Group")
Improved trading from German JV
HRMS future years' profitability expected to be at least 30%
greater than current market expectations
Hargreaves Services plc (AIM: HSP), a diversified group
delivering services to the industrial and property sectors,
announces further improvements to its expected trading results for
the current financial year ending 31 May 2022, due to the
continuing strong performance of its German Joint Venture,
Hargreaves Raw Materials Services GmbH ("HRMS").
The Board notes that results within both the HRMS materials
trading business and its subsidiary DK Recycling und Roheisen GmbH
("DK") are exceeding expectations. Current commodity prices,
specifically pig iron and zinc, are continuing to have a positive
benefit on the results of both businesses. The Board is now
confident that HRMS has sufficient visibility for the remainder of
the current financial year to expect its contribution to
Hargreaves' results in the second half to exceed that recorded in
the first half.
While it is not possible to predict how long these favourable
market conditions will prevail, the Board now expects some
beneficial impact to continue into the first half of the year
financial ending 31 May 2023. Additionally, as a result of
operational improvements at DK, future profitability from HRMS is
expected to be at least 30% greater than current market
expectations, even if current levels of commodity pricing are not
sustained.
HRMS continues to deploy cash generated to fund working capital
required to support current high levels of activity.
The remainder of the Group's businesses continue to trade in
line with market expectations.
Commenting on HRMS' improved trading performance, Roger
McDowell, the Chairman of Hargreaves, said: "Whilst current market
conditions are contributing to very strong HRMS results, I am
particularly pleased to see the underlying improvements that the
management team has implemented at DK, providing a reliable
platform for sustainable future profitability."
For further details:
Hargreaves Services www.hsgplc.co.uk
Gordon Banham, Chief Executive Officer Tel: 0191 373 4485
John Samuel, Group Finance Director
Walbrook PR (Financial PR & IR) Tel: 020 7933 8780 or hargreavesservices@walbrookpr.com
Paul McManus / Lianne Applegarth / Louis Ashe-Jepson Mob: 07980 541 893 / 07584 391 303 / 07747 515 393
Singer Capital Markets (Nomad and Joint Corporate Broker) Tel: 020 7496 3000
Sandy Fraser/ Justin McKeegan / Rachel Hayes
Investec (Joint Corporate Broker) Tel: 020 7597 5970
Sara Hale / David Anderson / Shalin Bhamra
About Hargreaves Services plc ( www.hsgplc.co.uk )
Hargreaves Services plc is a diversified group delivering
services to the industrial and property sectors, supporting key
industries within the UK and South East Asia. The Company's three
business segments are Services, Hargreaves Land and an investment
in a German joint venture, Hargreaves Raw Materials Services GmbH
("HRMS"). Services provides critical support to many core
industries including Energy, Environmental, UK Infrastructure and
certain manufacturing industries through the provision of materials
handling, mechanical and electrical contracting services, logistics
and major earthworks. Hargreaves Land is focused on the sustainable
development of brownfield sites for both residential and commercial
purposes. HRMS trades in specialist commodity markets and owns DK
Recycling, a specialist recycler of steel waste material.
Hargreaves is headquartered in County Durham and has operational
centres across the UK, as well as in Hong Kong and a joint venture
in Duisburg, Germany.
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