Profits roar higher at Hargreaves Services

14th Sep 2011 07:41

Strong carbon markets helped coal supplier Hargreaves Services post a sharp rise in profits for the year to 31 May.Underlying pre-tax profits rose to £40.5m from £34.3m on revenues up to £552.3m from £459.8m. Underlying diluted earnings per share rose to 103.7p from 88.8p. Broker Panmure Gordon had predicted a profit of £40m for the year, with earnings per share climbing by 34.1% to 101.4p.The full-year dividend increases to 15.5p from 13.5p.The Energy & Commodities division's gross revenues increased by £66.9m from £263.9m to £330.8m, reflecting increases in commodity prices and a 6% increase in overall tonnes supplied.Revenues at the Production division, which includes coal production facilities in Yorkshire, increased by £23.8m from £86.3m to £110.1m. Industrial Services revenues came in at £69.5m, up from £60.4m and the Transport division posted revenues of £78.7m, up from £72.7m."All production from Monckton and Maltby (in Yorkshire) is contracted until at least 2012, with the average contract price comfortably below the current market prices for coke and coal," the company said.It added: "Whilst we will carefully monitor the short-term economic volatility we will also continue efforts to invest to grow our operations in Europe and further afield."---RG