LONDON (ShareCast) - Solid fuel supplier and logistics group Hargreaves Services has said in a pre-close trading update that results from its Production Division will be below expectations.

The Production Division produces coal, coke, and smokeless fuel briquettes, and recycles tyres and other end-of-life rubber materials.

Hargreaves said that its Yorkshire-based Monckton business, which operates the only coke production plant in the UK, has suffered from "challenging trading conditions" in coke markets and contract renewals continued to put pressure on pricing during the second half.

Meanwhile, delays to starting operations in the first half and the wet weather in January and February meant that the company was unable to recover all of the shortfall in production during the financial year ending May 31st.

"The combined effect of these factors is anticipated to reduce the contribution from the Production Division in the financial year by between £3m and £5m," the AIM-listed firm said.

Elsewhere, Hargreaves said that profits in its other businesses, Energy & Commodities, Transport and Industrial Services, have remained "resilient" and in line with expectations for the full year.

Annual results from the company are due out on September 9th.

BC

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE