Hargreaves Services hit by production problems at Maltby
Hargreaves Services, the solid fuels and haulage firm, has been hit by disappointing coal production at its Maltby coal mine in South Yorkshire.
Hargreaves Services, the solid fuels and haulage firm, has been hit by disappointing coal production at its Maltby coal mine in South Yorkshire.
Underlying operating profit for the six months to the end of November 2011 was £18.9m, a drop of 9.8% against the same period of 2010.
Profits before tax fell 16.1% to £13.6m.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Hargreaves has, however, boosted the interim dividend from 5.1p to 6p, a rise of 17.6%.
Total revenues for the period were £322.8m, a rise of 27.1% over the same period of 2010.
Hargreaves has been installing a new "face" at the Maltby colliery called the T5 panel. The yield at the site during the face change is described as poor and will see production fall by around 100,000 tonnes over the full year.
The firm says results were also skewed because income from the Energy and Commodities division, which sells coal, coke and minerals, is weighted to the second half of the year.
The final factor hitting profits was that higher prices achieved by the Production division only started to apply at the beginning of 2012, after the reporting period ended.
Hargreaves' Chairman, Tim Ross, said he still believes that full year results will be in line with management expectations.
The market appears to believe this is still an open question, with the stock falling 1.5% by 9.15am.
Over the last year, however, Hargreaves Services' shares have gained 33.5%.
BS
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Regulator moves to protect access to cash amid branch closures and disappearing ATMs
News The Financial Conduct Authority has told banks to start assessing if local communities have adequate cash access from mid-September
By Marc Shoffman Published
-
VAT hike on private school fees could come earlier than previously expected
The government could start charging VAT on private school fees as soon as January 2025, according to the latest reports. What does it mean for parents?
By Katie Williams Published