Hargreaves Services plc (AIM: HSP), a diversified group delivering key projects and services to the industrial and property sectors, announces its interim results for the six months ended 30 November 2020.
KEY FINANCIAL RESULTS
Six Months ended 30 Nov 2020
Six Months ended 30 Nov 2019
Underlying Profit before tax*
Profit before tax**
Net Bank Debt (excluding leasing debt)
Net Asset Value
Net Assets per Share
* Underlying Profit before tax is defined by the Board as Profit before tax from continuing operations prior to exceptional items and amortisation of intangible assets.
** The comparative period Profit before tax included £2.8m of exceptional gains, including £2.4m relating to the sale of a subsidiary.
· As expected, Revenue and Underlying Profit before tax* were both lower than in the comparative period, primarily due to the phasing of works on the HS2 project within the Specialist Earthworks business;
· Interim dividend reinstated at 2.7p (2019: nil);
· Net bank debt reduced by 69% to £8.0m (2019: £25.4m);
· Profit after tax of German joint venture up 37% to £0.9m (2019: £0.7m);
· Post period end disposal of speciality coal for £24m, eliminating bank borrowing;
· Post period end completion of the first sale of land at Blindwells.
Commenting on the interim results, Chairman Roger McDowell said: "The Group has traded resiliently through the period and continues to do so although the delays to HS2 have been frustrating and have impacted the headline results adversely. The German joint venture continues to deliver profits in a challenging economic environment. The Group has made significant progress in reshaping its future beyond coal. The reduction in net bank debt in the period was substantial and it has been eliminated totally after the period end as a result of the sale of speciality coal. The Board expects to report results for the full financial year in line with expectations."