Hargreaves Services PLC – Full Year Trading Update and Results Notification
Hargreaves Services plc (AIM: HSP), a diversified group delivering services to the industrial and property sectors, provides the following update on trading ahead of reporting its preliminary results for the year ended 31 May 2019.
Both revenue and Underlying Operating Profit* (“UOP”) are expected to show growth over that reported for the year ended 31 May 2018, as a result of improved trading within the Group’s wholly owned businesses, with UOP expected to be in line with current market expectations.
The results at UOP level do not include the impact of the provisions made following the insolvency events of Wolf Minerals (UK) Limited in October 2018 and British Steel Limited in May 2019, details of which have been previously announced. Those provisions will be reported as exceptional items. Additionally, in October 2018, the Group completed the disposal of Brockwell Energy Limited, the profit on disposal of which will be reported within Discontinued Operations.
Net debt at the year end was £17.9m, compared to £30.8m as at 31 May 2018.
During the year, conditional sale agreements have been exchanged in respect of the first two plots at the Group’s key residential development site, Blindwells, near Edinburgh. The value of these two transactions, which are expected to reach legal completion in the year ending 31 May 2020 is over £10m.
These contract successes demonstrate the positive momentum behind the Blindwells development and contribute to the Board’s confidence in the Group’s future trading prospects.