Hargreaves informs of good trading conditions in Europe

22nd Jun 2011 15:13

AIM-quoted coal and transport services supplier Hargreaves Services has today provided a trading update ahead of the close of its reporting period.Management has highlighted that results, "are expected to be in line with management expectations." Additionally, the Board says that it remains confident about the prospects for the Group. Also worth noting perhaps, net debt at the end of May was £66m, slightly lower than management expectations. By areas of activity, trading conditions in both the industrial services arm as well as in transport are reported to have come in 'in line' with expectations. In the energy and commodities division, meantime, business is described as having traded well, "despite soft power station volumes." Here the company emphasizes that it has signed a coal contract to trade the first 800kt of coal from Hatfield Colliery with the first material coal deliveries expected to commence in the next few weeks. As well, Hargreaves reports that the European operations have continued to deliver strong growth, as expected. Lastly, the company has called attention to the recent implementation of new working practices at Maltby, indicating that, "we are pleased to note that production consistency has improved."As of 15:52PM shares of Hargreaves Services are rising by 1.6% to the 1,036p level. AB