Hargreaves Services Plc (HSP.L) provided trading update prior to the Group entering its close period.
The company stated that a decision was taken to abandon development work in the tail gate area and pull the T125 face line back to 1900m. Hargreaves Services estimated that this would result in a gap between the completion of production on the current T15 panel and the commencement of production on T125 of between 12 and 16 weeks and result in a loss of profits of between 12 million pounds and 16 million pounds in the financial year ending May 31, 2013.
According to the company, Maltby had a challenging first half. As expected, having worked through an area of very thin coal in the first half, Hargreaves Services was pleased that production and financial performance improved in the second half. The new working practices have operated successfully over the past year and prior to encountering the development problem on the T125 panel, the mine was on track to improve its performance.
The Industrial Services division had an exceptionally good year and achieved strong growth in line with the company's expectations. In the Energy and Commodities division, the UK business has continued to trade well. Further, transport division has had a solid year and has performed in line with management's expectations for the year. Both the dry bulk and tanker fleets continue to perform well.
Looking forward, the company said results for the year ended May 31, 2012 are expected to be in line with management's expectations.
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by RTT Staff Writer
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