Hargreaves Services profits rise as revenue slips
By Josh White
Date: Wednesday 29 Jan 2020
(Sharecast News) - Industrial and property project and service company Hargreaves Services reported a fall in revenue to £124.7m in its first half on Wednesday, from £167.9m a year earlier.
The AIM-traded firm said its profit before tax was £5.2m for the six months ended 30 November, swinging from a loss of £6m a year earlier.
Its underlying operating profit increased 19% year-on-year to £2.5m, and its margin improved to 2.0% from 1.3%.
Underlying earnings per share were ahead 18.5% at 6.4p, and the board maintained the company's interim dividend at 2.7p.
Net debt before IFRS 16 adjustments totalled £34.7m, widening from £28.6m a year earlier, and was £40.3m after the adjustments made for IFRS 16.
During the period, Hargreaves Services successfully disposed of Drakelands Restoration for £2.8m, generating exceptional profit of £2.4m and what the board called a "strong" future position at the Hemerdon tungsten mine.
Its Germany associate HRMS began trial production at its carbon pulverisation plant, and also acquired DK Recycling in December for €1.
Hargreaves Services said its Germany associate was now an integrated speciality manufacturing and trading entity, with an annualised revenue of more than €300m.
"These positive financial results demonstrate the group's progress in delivering higher quality earnings from the distribution and services business," said chairman Roger McDowell.
"I am also pleased with the initiatives being driven by our German associate in developing and enhancing the underlying value of our German investment and am encouraged by early indications."
At 1021 GMT, shares in Hargreaves Services were up 1.63% at 311p.
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